> ## Documentation Index > Fetch the complete documentation index at: https://middlepowers.fyi/llms.txt > Use this file to discover all available pages before exploring further. # Asia-Pacific > Week of May 18, 2026 ## Regional Summary **Building Without a Floor** The week's most revealing moment was also its most absurd: the American president twice announced he would call Taiwan's leader, China deployed more than 100 warships in response, and within 48 hours it emerged that no such call had been scheduled. That episode captures the region's condition: Washington generates signal without commitment, and every government must decide how much weight to put on what it hears. For Taiwan, the answer is almost none. A senior American official publicly declared a pause on the \$14 billion arms package — redirected to preserve munitions for the attack on Iran — while the White House and the Navy secretary offered contradictory explanations. Lai Ching-te, Taiwan's president, chose this moment to deliver the most explicit sovereignty statement of his two years in office, anchoring it in the 1996 missile crisis, when Chinese missiles fell into the strait and 76% of Taiwanese turned out to vote anyway. He cited 13.69% first-quarter GDP growth as the basis for sustained defence spending — but the legislature has blocked the eight-year procurement plan, the end-of-May deadline for the High Mobility Artillery Rocket System (HIMARS) letter of acceptance has arrived, and post-summit People's Liberation Army activity has exceeded, not returned to, its already-elevated baseline. The forces sustaining Taiwan's position are real; the forces undercutting it are gathering faster. Japan's situation differs in form but not structure. At their May summit, Xi Jinping reportedly named Sanae Takaichi, Japan's prime minister, as a threat to regional peace — a remarkable thing to say about an ally's prime minister in a bilateral meeting with that ally's patron — and the American president reportedly pushed back. But Beijing has not waited for diplomacy to settle the question: since December, it has cut exports of dysprosium, terbium, yttrium oxide, and gallium to Japan, calibrated to hit Mitsubishi Heavy Industries' shipbuilding and aero engine divisions. The logic is tight and punishing — the faster Japan rearms, the more exposed its defence industry becomes to Chinese control of the very inputs rearmament requires. Japan's response is to build alliances faster: the Quad in New Delhi, a new energy security pact with South Korea, a comprehensive partnership with the Philippines, a constitutional revision process that has moved out of committee. But the defence document laying out all this ambition buries its two key retreats: no spending target, and a formal withdrawal from any suggestion of nuclear latency. Japan is constructing a security architecture whose foundations remain unresolved. The same dynamic — improvisation under American distraction — runs through the rest of the region. South Korea and Japan framed their new energy pact as insurance against American retreat from the Indo-Pacific; both leaders said so publicly, and that candour is new. Lee Jae-myung spent the same week calling Benjamin Netanyahu a war criminal under an International Criminal Court warrant and directing his government to assess whether Seoul was legally obliged to arrest him should he arrive — a principled stand or an electoral calculation, or both, nine days before elections in races now tightening faster than polling had suggested. In Indonesia, the rupiah hit a record low, partly from oil disruption caused by the very American military operation that had paused Taiwan's arms deliveries. Jakarta's response — a surprise 50-basis-point rate hike, caps on dollar purchases, and a new state entity to route coal, palm oil, and ferronickel exports through a single government-supervised channel — deepened investor alarm rather than eased it. Analysts at Macquarie Capital, S\&P Global Energy, and Crédit Agricole all reached the same conclusion: policy uncertainty had grown. Jakarta's stock exchange fell two days running. Australia has done more than any other country in the region to build a coherent security architecture for this moment — the Australia-United Kingdom-United States (AUKUS) pact, the Pacific security framework, a deepening relationship with Timor-Leste, and record participation in Balikatan exercises alongside American HIMARS units. But Anthony Albanese's government now faces the real possibility of being reduced to minority, its political capital spent on a tax reform that is structurally serious but politically exposed. New polling projects a One Nation surge large enough to cost Labor its majority. A minority government does not automatically collapse, but it loses the authority to sustain a decade-long security commitment across changes in parliament and changes in Washington. That Mr Albanese is trying to push the budget package through before the July break — limiting the time the Greens have to harden their conditions — looks less like confidence than evidence of how little margin remains. The region is not paralysed. Alliances are deepening, governments are writing new doctrines, and defence spending is rising. But the week shows that building security architecture around an ambiguous patron is not the same as building without one, and the gaps show up in the details: a paused arms package, a blocked procurement bill, a defence document without a spending target, a rupiah at record lows, a tax reform one election from political collapse. If Washington's attention stays fixed on the Middle East and its summit signals continue to go unmatched by commitments, each of these partial hedges will face a harder test — and will have to pass it, or fail, alone. ## Country Summaries *** ### Taiwan flag Taiwan The American president said he would call Taiwan's leader — the first such signal since Washington recognised Beijing in 1979 — and within 48 hours China had deployed over 100 warships across the western Pacific as a warning that the call should not happen. He made the statement on May 20 and repeated it on May 21, but the language worked against him too. "We'll work on that, the Taiwan problem," he said — "the Taiwan problem" is Beijing's preferred framing, and its appearance in the American president's mouth, whatever his intent, signals that China's rhetoric has reached the White House. Lai Ching-te said he would be "happy" to talk, pledging to press Taiwan's status quo commitments and its interest in arms purchases. By May 22, four Reuters sources said no concrete plans existed. The signal generated diplomatic turbulence without delivering any benefit. Beijing's response was immediate and physical. Joseph Wu, the national security council secretary-general, disclosed on May 23 that China had deployed more than 100 navy, coast guard, and other vessels across waters from the Yellow Sea to the South China Sea in the days after the summit between Xi Jinping and the American president. People's Liberation Army (PLA) aircraft crossed the median line and entered the air defence identification zone daily from May 19 to 24, including a J-16 and F-16 encounter over the Taiwan Strait. On May 24, a Chinese coast guard ship staged a verbal sovereignty standoff near the Pratas Islands — lightly defended, 400km from Taiwan — before withdrawing. Taiwan's coast guard called the wording on sovereignty and jurisdiction "unusual." Post-summit PLA activity has not returned to pre-summit levels; it has exceeded them, confirming that the near-zero activity during the summit was diplomatic choreography, not de-escalation. The arms picture is no clearer. Hung Cao, the acting US Navy secretary, told a Senate appropriations hearing that the \$14 billion Taiwan arms package had been "paused" to preserve munitions for the US-Israel attack on Iran. "The foreign military sales will continue when the administration deems necessary," he said. Taiwan's presidential office said it had received no information about any adjustment. A White House source told Reuters the sales "take years to process and are unrelated" to the Iran operation. Wellington Koo, the defence minister, said he remained "cautiously optimistic." That is the most measured reassurance available: the end-of-May deadline for the High Mobility Artillery Rocket System (HIMARS) letter of acceptance has arrived, a senior American official has publicly declared a pause, no payment has been confirmed, and the White House and the Navy secretary are saying contradictory things. Mr Lai chose this moment for the most significant sovereignty statement of his two years in office. In his inauguration anniversary address on May 20 — the day after a failed legislative impeachment attempt — he structured his speech around the 30th anniversary of Taiwan's first direct presidential election, held in 1996 as Chinese missiles fell into the strait and 76% of voters turned out anyway. "Taiwan's future cannot be decided by forces outside our borders," he said. "No country has the right to annex Taiwan." He called for bipartisan unity, cited Q1 GDP growth of 13.69% — a 39-year quarterly high — as the basis for sustained defence investment, and disclosed that the legislature had failed to fully pass the defence special budget act. A new special act would be submitted alongside supplementary and annual budget increases covering arms procurement, international defence cooperation, and air, sea, and land drone production. The opposition's blockade of the NT\$1.25 trillion, eight-year procurement plan is now confirmed: the executive must start again. Beijing responded within hours. Chen Binhua, the Taiwan Affairs Office spokesman, called Mr Lai an "outright destroyer of cross-strait peace" who had "stubbornly adhered to the erroneous stance of Taiwan independence." Three days later, on May 23, the Presidential Office extended the anniversary into a mass public concert at Pingtung County Stadium, broadcast live across public television and telecom networks. The programming was deliberately cross-linguistic and cross-ethnic — Indigenous, Hakka, new resident, Taiwanese, electronic, rap, rock — projecting democratic identity as inclusive rather than ethnic. The political aim was to turn the speech's 1996 framing into something that could move a crowd. Mr Lai received Michael Chong, Canada's Conservative shadow foreign affairs minister and vice-chair of the House of Commons foreign affairs committee, and thanked Ottawa for its unanimous parliamentary motion rejecting Beijing's use of Resolution 2758 to exclude Taiwan from international bodies. They discussed bilateral agreements on investment, technology, health, and maritime security. The engagement confirms the legitimacy coalition is working, but it cannot substitute for the patron relationship. Economic fundamentals are the strongest of Mr Lai's tenure. The sovereignty narrative is at its most deliberate. But the patron relationship is conditional, PLA posture has exceeded its already-elevated baseline, the arms delivery mechanism is publicly incoherent, and the legislature has blocked the primary tool for funding Taiwan's own defence buildup. The forces pull in opposite directions. * **TSMC employee bonus cut rumors spark anger and strike threats despite record Q1 profits** — Rumors circulating on Facebook communities dedicated to Taiwan Semiconductor Manufacturing Company (TSMC) employees alleged the company planned to cut performance bonuses by roughly 15%, permanently decoupling them from earnings per share. Employees publicly threatened Samsung-style strikes, invoking the Korean chipmaker's union, which reached a last-minute deal before a planned strike. TSMC has not confirmed any bonus reduction. The controversy emerged against a backdrop of 58% year-on-year Q1 profit growth and coincided with Samsung union negotiations in which TSMC's compensation was cited as a benchmark. * [Trump says he will speak to Taiwan's president in break from protocol — bbc.com](https://www.bbc.com/news/articles/c78qv3w4xzqo) * [Trump told Taiwan not to 'go independent' - but does it want to? — bbc.com](https://www.bbc.com/news/articles/clyp9mk3mrgo) * [Trump claims he will speak to Taiwan's president, departing from decades-long diplomatic norms — theguardian.com](https://www.theguardian.com/world/2026/may/21/trump-taiwan-president-china-relations) * [Trump to speak with Taiwan's president in a new challenge for US-China relations — reuters.com](https://www.reuters.com/world/china/trump-says-he-will-speak-with-taiwans-president-2026-05-20/) * [No talks currently planned between Trump and Taiwan's Lai, sources say — reuters.com](https://www.reuters.com/world/china/trump-call-with-taiwans-lai-not-yet-planned-sources-say-2026-05-22/) * [No talks currently planned between Trump and Taiwan's Lai, sources say — reuters.com](https://reuters.com/world/china/trump-call-with-taiwans-lai-not-yet-planned-sources-say-2026-05-22) * [Taiwan says President Lai would be happy to talk to Trump — reuters.com](https://reuters.com/world/china/taiwan-says-president-lai-would-be-happy-talk-trump-2026-05-21) * [Trump's mixed messaging on Taiwan – what we know — aljazeera.com](https://www.aljazeera.com/news/2026/5/21/trump-says-hell-speak-to-taiwans-leader-why-that-is-significant) * [Taiwan welcomes idea of Trump talking to its president, which would be a major break in protocol — nbcnews.com](https://www.nbcnews.com/world/taiwan/trump-says-will-speak-taiwan-president-major-break-protocol-rcna346259) * [Taiwan's Lai says he'd tell Trump he hopes to continue arms purchases from U.S., if given a chance — nbcnews.com](https://nbcnews.com/world/asia/taiwans-future-cannot-decided-external-forces-president-says-rcna346033) * [Trump says he's willing to talk to Taiwan's leader, a major departure from diplomatic norms — edition.cnn.com](https://edition.cnn.com/2026/05/21/asia/trump-taiwan-china-lai-call-intl-hnk) * [Taiwan: Trump prods China with offer of direct Taipei talks — dw.com](https://www.dw.com/en/trump-talks-taiwan-lai-ching-te-weapons-deal/a-77238712) * [Why a Trump-Lai call could trigger 'turbulence' between Washington and Beijing — scmp.com](https://scmp.com/news/china/diplomacy/article/3354379/beijing-warns-us-taiwan-ties-after-trump-signals-openness-talking-lai) * [Trump says he plans to speak with President Lai on arms sale — taipeitimes.com](https://taipeitimes.com/News/front/archives/2026/05/21/2003857699) * [US and Taiwan presidents haven't spoken since 1979. Why is Trump breaking protocol? — firstpost.com](https://www.firstpost.com/explainers/us-and-taiwan-presidents-havent-spoken-since-1979-why-is-trump-breaking-protocol-14013790.html) * [Why China might react badly to any call between Trump and Taiwan's president — hindustantimes.com](https://hindustantimes.com/world-news/why-china-might-react-badly-to-any-call-between-trump-and-taiwans-president-101779427810794.html) * [Taiwanese leader Lai: I'll be 'happy' to talk to Trump — manilatimes.net](https://manilatimes.net/2026/05/22/world/asia-oceania/taiwanese-leader-lai-ill-be-happy-to-talk-to-trump/2349391) * [Would be happy to talk to U.S. President Donald Trump: Taiwan leader Lai Ching-te — thehindu.com](https://www.thehindu.com/news/international/would-be-happy-to-talk-to-us-president-donald-trump-taiwan-leader-lai-ching-te/article71005300.ece) * [Trump Wants To Speak To Taiwan's President, But There Are 4 Reasons Why China Might Not Like It — news18.com](https://news18.com/amp/explainers/trump-wants-to-speak-to-taiwans-president-but-there-are-4-reasons-why-china-might-not-like-it-ws-l-10106380.html) * [Trump's Hint at a Talk With Taiwan's Lai Ching-te Touches a Nerve With Beijing's Communist Regime — nysun.com](https://nysun.com/article/trumps-hint-at-a-talk-with-taiwans-lai-ching-te-touches-a-nerve-with-beijings-communist-regime) * [Donald Trump anunció que mantendrá una conversación con el presidente de Taiwán, Lai Ching-te — infobae.com](https://www.infobae.com/america/mundo/2026/05/21/donald-trump-anuncio-que-mantendra-una-conversacion-con-el-presidente-de-taiwan-lai-ching-te/) * [China se inquieta y Taipei se ilusiona con un posible diálogo entre Trump y Lai Ching-te — infobae.com](https://www.infobae.com/america/mundo/2026/05/21/china-se-inquieta-y-taipei-se-ilusiona-con-un-posible-dialogo-entre-trump-y-lai-ching-te-el-presidente-de-taiwan/) * [Trump says he will speak to Taiwan President amid arms sale tensions with China — wionews.com](https://wionews.com/world/trump-taiwan-president-lai-ching-te-arms-sale-china-1779453425726) * [President Trump to Speak With President Lai Ching-te on Taiwan Issue — chosun.com](https://www.chosun.com/english/world-en/2026/05/20/WLYI4D6NKBGKTG4F2JYCZOS2TE/) * [Trump plans to speak with Taiwan's President Lai Ching-te in unprecedented diplomatic shift — cryptobriefing.com](https://cryptobriefing.com/trump-taiwan-call-diplomatic-shift-crypto/) * [Trump Confirms Potential Call with Lai: What It Means for Taiwan-U.S.-China Ties — world.storm.mg](https://world.storm.mg/articles/1133881) * [El presidente de Taiwán, Lai Ching-te, dijo que estaría 'encantado' de hablar con su homólogo estadounidense, Donald Trump — eltiempo.com](https://www.eltiempo.com/mundo/eeuu-y-canada/el-presidente-de-taiwan-lai-ching-te-dijo-que-estaria-encantado-de-hablar-con-su-homologo-estadounidense-donald-trump-3557216) * [El presidente de Taiwán, Lai Ching-te, dijo que estaría 'encantado' de hablar con su homólogo estadounidense, Donald Trump (AMP) — eltiempo.com](https://www.eltiempo.com/amp/mundo/eeuu-y-canada/el-presidente-de-taiwan-lai-ching-te-dijo-que-estaria-encantado-de-hablar-con-su-homologo-estadounidense-donald-trump-3557216) * [La Nación / Lai Ching-te: 'El futuro de Taiwán no puede ser decidido por fuerzas extranjeras' — lanacion.com.py](https://www.lanacion.com.py/mundo/2026/05/21/lai-ching-te-el-futuro-de-taiwan-no-puede-ser-decidido-por-fuerzas-extranjeras/) * [Chinese ship leaves after tense standoff near Taiwan-controlled islands — reuters.com](https://www.reuters.com/world/china/taiwan-china-coast-guards-standoff-top-south-china-sea-2026-05-24/) * [Taiwan security chief says China deployed 'over 100 vessels' in regional waters — arabnews.com](https://www.arabnews.com/node/2644664/world) * [Chinese ship leaves after tense standoff near Taiwan-controlled islands — arabnews.com](https://www.arabnews.com/node/2644784/world) * [China deployed over 100 vessels near Taiwan in the wake of Trump-Xi summit, Taiwan security official claims — foxnews.com](https://www.foxnews.com/world/china-deployed-100-vessels-near-taiwan-wake-trump-xi-summit-taiwan-security-official-claims) * [El jefe de seguridad de Taiwán denunció que China desplegó más de 100 buques alrededor de la isla — infobae.com](https://www.infobae.com/america/mundo/2026/05/23/el-jefe-de-seguridad-de-taiwan-denuncio-que-china-desplego-mas-de-100-buques-a-su-alrededor-en-los-ultimos-dias/) * [China ha desplegado 'más de 100 buques' alrededor de Taiwán, denuncia jefe de Seguridad taiwanés — rfi.fr](https://www.rfi.fr/es/asia-pacifico/20260523-china-ha-desplegado-m%C3%A1s-de-100-buques-alrededor-de-taiw%C3%A1n-denuncia-jefe-de-seguridad-taiwan%C3%A9s) * [China's Vast Maritime Surge Raises Tensions Around Taiwan — millichronicle.com](https://millichronicle.com/2026/05/67629.html) * [Taiwán denuncia el despliegue de más de cien buques chinos durante los últimos días entre Japón y Filipinas — europapress.es](https://www.europapress.es/internacional/noticia-taiwan-denuncia-despliegue-mas-cien-buques-chinos-ultimos-dias-japon-filipinas-20260523120611.html) * [Un día después del cerco naval, China lanza incursiones aéreas sobre Taiwán y EEUU le suspende venta de armas — acento.com.do](https://acento.com.do/internacional/un-dia-despues-del-cerco-naval-china-lanza-incursiones-aereas-sobre-taiwan-y-eeuu-le-suspende-venta-de-armas-9684950.html) * [China despliega 100 buques alrededor de Taiwán tras cumbre Trump-Xi — acento.com.do](https://acento.com.do/internacional/china-despliega-100-buques-alrededor-de-taiwan-tras-cumbre-trump-xi-9684508.html) * [Taiwán denuncia el despliegue de 100 buques chinos alrededor de su territorio tras la reunión de Trump y Xi Jinping — larepublica.pe](https://larepublica.pe/mundo/2026/05/23/taiwan-denuncia-el-despliegue-de-100-buques-chinos-alrededor-de-su-territorio-tras-la-reunion-de-trump-y-xi-jinping-878347) * [Taiwán denuncia un despliegue naval masivo de China: más de 100 barcos y amenazas cruzadas — canal26.com](https://www.canal26.com/internacionales/2026/05/23/taiwan-denuncia-un-despliegue-naval-masivo-de-china-mas-de-100-barcos-y-amenzas-cruzadas/) * [Taiwán denuncia que China ha desplegado más de 100 buques de guerra a su alrededor — diariolasamericas.com](https://www.diariolasamericas.com/mundo/taiwan-denuncia-que-china-ha-desplegado-mas-100-buques-guerra-su-alrededor-n5395974) * [Taiwán acusa a China de amenazar la estabilidad regional con un enorme despliegue naval — ellitoral.com](https://www.ellitoral.com/internacionales/taiwan-china-estrategia-seguridad_0_fEnrW0n4YJ.html) * [Taiwán denunció el despliegue de más de 100 buques chinos alrededor de la isla — ambito.com](https://www.ambito.com/mundo/taiwan-denuncio-el-despliegue-mas-100-buques-chinos-alrededor-la-isla-n6280842) * [Chinese military deploys over 100 vessels near Taiwan, Okinawa; Taipei wary — ryoex.com](https://www.ryoex.com/en/market-news/20260523156801/) * [China Taiwan: Wu says over 100 vessels followed Trump-Xi summit — el-balad.com](https://www.el-balad.com/17013555) * [《TAIPEI TIMES》 Taiwan, China coast guards argue in South China Sea — news.ltn.com.tw](https://news.ltn.com.tw/news/focus/breakingnews/5448192) * [中國科研船非法襲擾遭海巡驅離！吳釗燮批中國持續非法挑釁 — news.ltn.com.tw](https://news.ltn.com.tw/news/politics/breakingnews/5446591) * [Taiwan Military Activity: Taiwan detects Chinese military aircraft, naval vessels near island for second straight day — timesofindia.indiatimes.com](https://timesofindia.indiatimes.com/world/rest-of-world/taiwan-detects-chinese-military-aircraft-naval-vessels-near-island-for-second-straight-day/articleshow/131288010.cms) * [Taiwan detects 4 sorties of Chinese military aircraft, 6 vessels around itself — tribuneindia.com](https://www.tribuneindia.com/news/adiz/taiwan-detects-4-sorties-of-chinese-military-aircraft-6-vessels-around-itself) * [Chinese aircraft, naval vessels detected near Taiwan, says defence ministry — firstpost.com](https://www.firstpost.com/world/chinese-aircraft-naval-vessels-detected-near-taiwan-says-defence-ministry-14014516.html) * [China deploys 16 aircraft, 8 vessels near Taiwan: Defense Ministry — newsable.asianetnews.com](https://newsable.asianetnews.com/world/china-deploys-16-aircraft-8-vessels-near-taiwan-defense-ministry-articleshow-13ofkwf) * [6 Chinese aircraft, 10 vessels detected near Taiwan, enter ADIZ — newsable.asianetnews.com](https://newsable.asianetnews.com/world/6-chinese-aircraft-10-vessels-detected-near-taiwan-enter-adiz-articleshow-oc681as) * [Chinese J-16 and RoC F-16 Fighters Engage Over Taiwan Strait: New U.S. Infrared Pod Proves Invaluable — militarywatchmagazine.com](https://militarywatchmagazine.com/article/chinese-j16-roc-f16-engage-taiwan-strait) * [US Arms Sales to Taiwan Unrelated to Iran War, Source Says — usnews.com](https://www.usnews.com/news/world/articles/2026-05-23/us-arms-sales-to-taiwan-unrelated-to-iran-war-source-says) * [Full text of President Lai's address on 2nd anniversary of taking office — focustaiwan.tw](https://focustaiwan.tw/politics/202605200009) * [Taiwan's future not to be decided by 'external force': President Lai — focustaiwan.tw](https://focustaiwan.tw/politics/202605200008) * [Taiwan will not provoke conflict nor give up sovereignty, says president Lai Ching-te — bbc.com](https://www.bbc.com/news/articles/c7591gq10qko) * [Lai marks two years in office with vow that Taiwan's future lies with its people — tcn.tw](https://tcn.tw/news/6838401) * [Lai says 'no Taiwan independence issue' following Trump comments — tcn.tw](https://www.tcn.tw/news/6837663) * [Licensable picture: Taiwan President Lai Ching-te speaks at a news conference on the second anniversary of his taking office — reutersconnect.com](https://www.reutersconnect.com/item/taiwan-president-lai-ching-te-speaks-at-a-news-conference-on-the-second-anniversary-of-his-taking-office-at-the-presidential-building-in-taipei/dGFnOnJldXRlcnMuY29tLDIwMjY6bmV3c21sX1JDMlFDTEFQN0xEVA) * [Beijing slams Taiwan's Lai as 'destroyer' of peace after anniversary speech — scmp.com](https://scmp.com/news/china/politics/article/3354261/beijing-slams-lai-destroyer-peace-after-leaders-anniversary-speech) * [Taiwan's Lai says he'd tell Trump he hopes to continue arms purchases from US, if given a chance — apnews.com](https://apnews.com/article/taiwan-lai-ching-te-address-second-annivesary-d52867fbbb34e66f414fb4a45929f7fc) * [Taiwan's Lai rejects China pressure, pledges strong defense — dw.com](https://dw.com/en/taiwans-lai-rejects-china-pressure-pledges-stronger-defense/a-77223363) * [Lai Ching-te Na Shan Suka Yayin Da Yunkurin Neman 'Yancin Taiwan Ke Rasa Goyon Baya — hausa.leadership.ng](https://hausa.leadership.ng/lai-ching-te-na-shan-suka-yayin-da-yunkurin-neman-yancin-taiwan-ke-rasa-goyon-baya) * [赖清德：愿与中国大陆交流 但拒绝'统战包装和平' — 8world.com](https://www.8world.com/greater-china/lai-ching-te-china-relationship-3155301) * [China, Taiwán y la trampa del 520 — anbariloche.com.ar](https://www.anbariloche.com.ar/noticias/2026/05/24/106767-china-taiwan-y-la-trampa-del-520) * [Taiwan's Lai says he'd tell Trump he hopes to continue arms purchases from US, if given a chance — nbcnews.com](https://nbcnews.com/world/asia/taiwans-future-cannot-decided-external-forces-president-says-rcna346033) * [Lai, KMT trade barbs over cross-strait policy differences — focustaiwan.tw](https://focustaiwan.tw/politics/202605200018) * [US navy chief says \$14bn arms sale to Taiwan paused due to Iran war — bbc.com](https://www.bbc.com/news/articles/c232z4yk437o) * [US arms sales to Taiwan unrelated to Iran war, source says — reuters.com](https://www.reuters.com/world/china/us-arms-sales-taiwan-unrelated-iran-war-source-says-2026-05-23/) * [Taiwan's government says US hasn't notified it of any pause in a planned \$14B arms sale — apnews.com](https://apnews.com/article/taiwan-us-arms-china-fa36646d6b370a4cd3da756d2fafb77a) * [US still planning on \$14 billion arms sale to Taiwan, officials say — fox6now.com](https://www.fox6now.com/news/us-still-planning-arms-sale-taiwan-officials) * [U.S. Suspends \$14 Billion Worth of Arms Deliveries to Republic of China Forces Due to Major Iran War Induced Shortages — militarywatchmagazine.com](https://militarywatchmagazine.com/article/us-suspends-14billion-arms-republic-china) * [Acting Navy Secretary Hung Cao undercuts Trump and Pete Hegseth on Taiwan, Iran — thehill.com](https://thehill.com/policy/defense/5892374-navy-secretary-taiwan-arms-sale-pause-iran/) * [Exclusive: China Warns US Over Taiwan Arms Sales as \$14 Billion Package Hangs in Balance — congress.net](https://congress.net/exclusive-china-warns-us-over-taiwan-arms-sales-as-14-billion-package-hangs-in-balance/) * [Taiwan's Lai says he'd tell Trump he hopes to continue arms purchases from US, if given a chance — apnews.com](https://apnews.com/article/taiwan-lai-ching-te-address-second-annivesary-d52867fbbb34e66f414fb4a45929f7fc) * [台積電要砍分紅消息瘋傳！員工炸鍋揚言「學三星罷工」 — ec.ltn.com.tw](https://ec.ltn.com.tw/article/breakingnews/5447182) * [台積電「傳言將砍分紅」網轟賺都高層先拿，號召#下班關手機運動 — blocktempo.com](https://www.blocktempo.com/tsmc-employee-bonus-decoupled-eps-oncall-movement-semiconductor-cohesion-crisis/) * [驚傳台積電將砍15%分紅？員工揚言：不排除效法三星「罷工」 — tw.stock.yahoo.com](https://tw.stock.yahoo.com/news/%E9%A9%9A%E5%82%B3%E5%8F%B0%E7%A9%8D%E9%9B%BB%E5%B0%87%E7%A0%8D15-%E5%88%86%E7%B4%85-%E5%93%A1%E5%B7%A5%E6%8F%9A%E8%A8%80-%E4%B8%8D%E6%8E%92%E9%99%A4%E6%95%88%E6%B3%95%E4%B8%89%E6%98%9F-%E7%BD%B7%E5%B7%A5-074330933.html) * [台積電驚傳大砍15%分紅！員工不滿揚言「罷工」：學三星拿獎金 — finance.ettoday.net](https://finance.ettoday.net/news/3171202) * [TSMC Employees Are Exploding With Rage Over Rumored Bonus Cuts Despite A 58% Profit Jump, And Are Coalescing Around Samsung-Style Strikes — wccftech.com](https://wccftech.com/tsmc-employees-are-exploding-with-rage-over-rumored-bonus-cuts-despite-a-58-profit-jump-and-are-coalescing-around-samsung-style-strikes) * [台積電驚傳砍15%分紅？員工怒喊：不排除效法三星大罷工！外媒分析風暴若成真傷害多大一次看 — businesstoday.com.tw](https://www.businesstoday.com.tw/article/category/183015/post/202605240009/) * [TSMC employees threaten Samsung-style strikes over bonus cut rumors despite a 58% profit jump — tweaktown.com](https://www.tweaktown.com/news/111793/tsmc-employees-threaten-samsung-style-strikes-over-bonus-cut-rumors-despite-a-58-percent-profit-jump/index.html) * [Workplace Tension Reaches the Heart of AI — cloudnews.tech](https://cloudnews.tech/workplace-tension-reaches-the-heart-of-ai/) * [傳三星工會「拿台積電」逼資方妥協！韓媒曝內幕：羨慕高薪制度 — news.tvbs.com.tw](https://news.tvbs.com.tw/world/3210547) *** ### Japan flag Japan When Xi Jinping told the American president at their May summit that Sanae Takaichi posed a threat to regional peace — naming Japan's prime minister alongside Taiwan's president as a shared adversary — the American president reportedly pushed back and defended her. Neither government confirmed the exchange on the record, but the US ambassador separately confirmed that the first call the American president made after the summit went to Tokyo, reaffirming the "ironclad" alliance. That reported exchange marks a shift. Japan is no longer simply briefed after US-China summits; it is the subject of them. The alliance has enough political weight to survive direct Chinese pressure at the highest level — but Xi's decision to name Ms Takaichi also signals that Beijing has made Japan's prime minister a direct target, not a peripheral concern. Beijing has not confined its pressure to words. Since December, China has blocked exports of dysprosium, terbium, yttrium oxide, and gallium to Japan. Reuters confirmed this week that the embargo is calibrated to hit Mitsubishi Heavy Industries — Japan's largest defence conglomerate — targeting its shipbuilding and aero engine divisions. China continues to ship finished rare earth magnets; it is the upstream inputs it has cut. The message is precise: Japan's defence buildup itself is a legitimate target for supply chain coercion. Shin-Etsu Chemical has halted new dysprosium orders. Japan-backed Lynas in Australia produces roughly 8 metric tons a quarter against China's prior monthly shipments of 14 metric tons to Japan. Stockpile releases are buying time, not closing the gap. The logic runs in a troubling circle: the faster Japan rearms, the more exposed its defence industry becomes to Chinese grip on the very inputs rearmament requires. Ryosei Akazawa, the trade minister, spoke briefly with China's commerce minister on May 23 — the first ministerial contact since the dispute began. Japan's ambassador in Beijing said he was working toward a Takaichi-Xi meeting at APEC but could "not be so optimistic." Japan's security doctrine is advancing regardless. Draft proposals from the Liberal Democratic Party (LDP) for the December security document revision set a new target: enough ammunition, fuel, and spare parts to fight for one year without resupply. The draft also calls for interceptor drones scaled from prototypes tested in Ukraine, high-energy laser and microwave air defences, and counterstrike-capable next-generation submarines. The document buries two significant changes, however. No specific defence spending target appears — the internal LDP disagreement confirms that committing to 3.5% of GDP is not feasible. And the draft retreats from Ms Takaichi's earlier questioning of the non-nuclear principles, settling instead on "further ensuring the credibility of extended deterrence centred on US nuclear deterrence." Whatever space the prime minister's remarks had opened toward nuclear latency, the party's formal doctrinal process has closed it. Even as China applied pressure, Japan deepened several alliances. Toshimitsu Motegi, the foreign minister, attended the Quadrilateral Security Dialogue (Quad) foreign ministers' meeting in New Delhi and rejected suggestions the group had been sidelined by the American-Chinese summit, naming critical minerals cooperation as the top item. The sixth summit in under a year between Ms Takaichi and Lee Jae-myung, South Korea's president — held in Mr Lee's hometown of Andong with near-state-visit ceremony — produced a new energy supply chain pact setting up a system to share crude oil and petroleum products under the Power Asia framework. Ferdinand Marcos Jr., the Philippine president, arrived for a four-day state visit, received Japan's highest imperial decoration, and agreed to upgrade their relationship to a comprehensive strategic partnership; maritime security was central, with China's behaviour the clear backdrop. Three parties in the Diet — the LDP, the Japan Innovation Party (Nippon Ishin no Kai), and the Democratic Party for the People — also formally endorsed an emergency constitutional clause permitting term extensions for lawmakers during crises, moving constitutional revision out of committee and into public debate. The economic picture is more unsettled than last week's data suggested. Japan's April core inflation fell to a four-year low, driven by the government's own fuel and education subsidies, complicating the Bank of Japan's (BOJ) case for a June rate hike. Kazuo Ueda, the BOJ governor, met Ms Takaichi for the first time since February; Mr Ueda left without consent for a June hike, and the prime minister told him to conduct "appropriate policy mindful of government steps to cushion living costs." Markets still price the probability of a June hike at roughly 80%, but analysts now see gaining her informal approval as the main obstacle — a political consent problem, not an inflation data problem. Crude oil imports fell 64% year on year in April — the steepest drop since 1980 — as the Hormuz closure cut Middle East supply, yet a trade surplus of ¥301.9 billion emerged where a deficit had been forecast. Ms Takaichi responded by directing Satsuki Katayama, the finance minister, to compile a ¥3 trillion supplementary budget, limited to fuel subsidy reserves and summer utility costs rather than the broader stimulus the opposition sought; she cited rising bond yields as the argument against wider deficit spending. At home, 347 of the LDP's 417 lawmakers — 83% — attended the inaugural meeting of the National Power Research Group, including rivals who had run against Ms Takaichi and Fumio Kishida, a former prime minister. The breadth of attendance simultaneously confirms the prime minister's strength and limits the group's utility: a club that nearly everyone joins cannot function as a factional pressure machine. The identifiable hard-opposition core — Shigeru Ishiba, Taro Kono, and a lawmaker who compared the group to the wartime Imperial Rule Assistance Association — is small and now conspicuously isolated. Ms Takaichi separately denied for the third time in Diet questioning that she or her team had commissioned defamatory videos against LDP rivals during the party leadership race; the allegation remains live but undocumented. * **LDP formally approves AI-blockchain financial infrastructure roadmap with yen stablecoins and tokenised deposits** — Japan's ruling Liberal Democratic Party (LDP) formally approved a policy proposal titled 'Next-Generation AI & Onchain Finance Concept,' drafted by a project team led by lawmaker Seiji Kihara. The proposal outlines a five-year roadmap for 24/7 automated financial infrastructure using blockchain, yen stablecoins, tokenised bank deposits, and AI-driven payments, with the Financial Services Agency (FSA) designated as the oversight body. Multiple crypto/fintech outlets covered the story extensively. *([theblock.co](https://theblock.co/post/401804/japan-ai-blockchain-proposal-ldp))* * **Takaichi orders supplementary budget for energy shock relief amid Middle East crisis** — Ms Takaichi reversed her earlier position and called on Satsuki Katayama, the finance minister, to compile a supplementary budget of roughly ¥3 trillion to address surging energy costs driven by the Hormuz Strait closure and Middle East war. Debates centre on the size, bond issuance, and whether gasoline, electricity, and food consumption tax subsidies should be extended. The Bank of Japan-government relationship and fiscal credibility are running themes. *([japantimes.co.jp](https://bloomberg.com/news/articles/2026-05-18/japan-s-takaichi-set-to-announce-extra-budget-amid-mideast-shock))* * **Japan April core inflation falls to four-year low as energy subsidies take effect; Bank of Japan rate path uncertain** — Japan's core inflation slowed to a four-year low in April, driven by government fuel and education subsidies, complicating the Bank of Japan's case for a near-term rate hike. Export data for April also beat expectations, rising for an eighth consecutive month despite Middle East supply disruptions. A June 3 speech by Kazuo Ueda, the Bank of Japan governor, is flagged as the next key signal on rate direction. *([firstpost.com](https://www.firstpost.com/business/japan-inflation-four-year-low-energy-subsidies-boj-rate-hike-oil-prices-april-2026-14013870.html))* * **Albanian prime minister visits Tokyo; Takaichi expresses support for Albania's EU accession** — Edi Rama, Albania's prime minister, was received with an official ceremony by Ms Takaichi in Tokyo on May 22. Ms Takaichi voiced Japan's full support for Albania's EU membership and highlighted shared values, while Mr Rama discussed Indo-Pacific cooperation and invited Ms Takaichi to Albania for next year's NATO summit. Coverage spanned Albanian, Italian, and Japanese outlets. *([japantoday.com](https://japantoday.com/category/picture-of-the-day/albanian-pm-meets-takaichi))* * **Emperor Naruhito holds multiple ceremonial engagements; UN Secretary-General audience in Tokyo** — Emperor Naruhito and Empress Masako undertook several public engagements this week, including hosting the UN Secretary-General for an audience in Tokyo, attending the 76th National Tree Planting Festival in Ehime, attending the JAID 100th anniversary ceremony, and Princess Aiko representing the imperial family at the Laos Festival in Yoyogi Park. The Emperor also hosted Australian business figures receiving the Order of the Rising Sun. A Dutch royal event mentioned Emperor Naruhito's upcoming state visit to the Netherlands around the World Cup. *([un.org](https://www.un.org/sg/en/content/sg/readouts/2026-05-20/readout-of-the-secretary-generals-audience-his-majesty-naruhito-emperor-of-japan))* * **Liberal Democratic Party, Japan Innovation Party, and Democratic Party for the People back emergency constitutional clause; mandatory national ID card proposal also advanced** — Three parties — the Liberal Democratic Party (LDP), the Japan Innovation Party (Nippon Ishin no Kai), and the Democratic Party for the People — voiced support on Sunday for an emergency clause in Japan's constitution to handle governance during a crisis coinciding with an election. The same week, the LDP's Digital Society Promotion Headquarters proposed making My Number national ID card ownership mandatory, with no penalty for noncompliance. *([japantimes.co.jp](https://www.japantimes.co.jp/news/2026/05/24/japan/politics/ldp-jip-dpp-emergency-clause-constitution/))* * **Japan passes joint child custody reform ending 80-year sole-custody system** — Japan's House of Councillors passed a reform to allow joint custody for divorced parents, ending a sole-custody system in place for approximately 80 years. The bill passed with cross-party support, including the Liberal Democratic Party (LDP), Komeito, the Constitutional Democratic Party (CDP), the Japan Innovation Party (Nippon Ishin no Kai), and the Democratic Party for the People, though judges retain authority to block shared custody in cases of abuse or harm to children. *([prismnews.com](https://www.prismnews.com/news/japan-approves-joint-custody-for-divorced-parents-after-80))* * **Team Mirai leader calls himself Takaichi's 'AI tutor' at first party leaders' debate** — At the first party leaders' debate in the Diet on May 20, Takahiro Anno, leader of Team Mirai, offered to serve as Ms Takaichi's AI tutor, arguing that AI's impact on society would rival the Industrial Revolution and urging Ms Takaichi to personally experience the latest AI tools. The exchange received coverage in Japan Forward in both English and Japanese. *([japan-forward.com](https://japan-forward.com/team-mirai-leader-says-he-is-ready-to-serve-as-takaichis-ai-tutor/))* * **Keidanren startup-friendly scoring published; Keidanren visit to Ecuador flagged** — Keidanren (Japan Business Federation) released its fourth annual Startup Friendly Scoring of major Japanese companies, with Dentsu Group taking second place for the third consecutive year and NEC ranking fifth. A Spanish-language op-ed from Ecuador separately noted an upcoming Keidanren visit to Ecuador in July, describing significant interest from Japanese executives in the market. *([prtimes.jp](https://prtimes.jp/main/html/rd/p/000001334.000078149.html))* * [Trump throws weight behind Japan's Takaichi in meeting with Xi, Yomiuri says — reuters.com](https://www.reuters.com/world/china/trump-throws-weight-behind-japans-takaichi-meeting-with-xi-yomiuri-says-2026-05-24/) * [Xi Attacked Japan's Rearmament During Trump Summit, FT Says — bloomberg.com](https://www.bloomberg.com/news/articles/2026-05-24/xi-attacked-japan-s-rearmament-during-trump-summit-ft-says) * [Trump defended Japan's Takaichi during talks with Xi, Yomiuri reports — investing.com](https://www.investing.com/news/economy-news/trump-defended-japans-takaichi-during-talks-with-xi-yomiuri-reports-4708147) * [Trump backed Takaichi to Xi in talks: sources — taipeitimes.com](https://www.taipeitimes.com/News/world/archives/2026/05/25/2003857937) * [Ft: Xi ha attaccato Takaichi per la 'rimilitarizzazione' del Giappone durante il vertice con Trump — agenzianova.com](https://www.agenzianova.com/news/ft-xi-ha-attaccato-takaichi-per-la-rimilitarizzazione-del-giappone-durante-il-vertice-con-trump/) * [Xi Jinping Kritik Keras Remiliterisasi Jepang di Depan Trump — bloombergtechnoz.com](https://www.bloombergtechnoz.com/detail-news/109917/xi-jinping-kritik-keras-remiliterisasi-jepang-di-depan-trump) * [Trump's First Post-Summit Call Went to Takaichi, U.S. Envoy Says — en.sedaily.com](https://en.sedaily.com/finance/2026/05/21/trumps-first-post-summit-call-went-to-takaichi-us-envoy-says) * [Japan's Taiwan fears expose a deeper crisis in American deterrence — jpost.com](https://www.jpost.com/opinion/article-896681) * [Japan and South Korea: Friends, With Limits — thediplomat.com](https://thediplomat.com/2026/05/japan-and-south-korea-friends-with-limits/) * [US, Japan, Australia, India to have 'Quad' top diplomats' meeting in Delhi, Japan says — reuters.com](https://www.reuters.com/world/china/us-japan-australia-india-have-quad-top-diplomats-meeting-delhi-japan-says-2026-05-22/) * [US, Japan, Australia, India to have 'Quad' top diplomats' meeting in Delhi, Japan says (duplicate URL) — reuters.com](https://reuters.com/world/china/us-japan-australia-india-have-quad-top-diplomats-meeting-delhi-japan-says-2026-05-22) * [Quad remains 'vital', says Japanese Foreign Minister, rejecting concerns over the grouping's importance in the Indo-Pacific — thehindu.com](https://www.thehindu.com/news/national/quad-remains-vital-says-japanese-foreign-minister-rejecting-concerns-over-the-groupings-importance-in-the-indo-pacific/article71017719.ece) * [Quad remains 'vital', says Japanese Foreign Minister (vocab duplicate) — thehindu.com](https://thehindu.com/news/national/quad-remains-vital-says-japanese-foreign-minister-rejecting-concerns-over-the-groupings-importance-in-the-indo-pacific/article71017719.ece) * [Jaishankar To Host Quad Foreign Ministers' Meet On May 26 — outlookindia.com](https://outlookindia.com/national/jaishankar-to-host-quad-foreign-ministers-meet-on-may-26-mea) * [Can the Quad stay relevant to boost Indo-Pacific security? — dw.com](https://dw.com/en/can-the-quad-stay-relevant-to-boost-indo-pacific-security/a-77261939) * [Quad meet: Indo-Pacific to be a big energy lifeline, says Jaishankar — newsable.asianetnews.com](https://newsable.asianetnews.com/world/quad-meet-indopacific-to-be-a-big-energy-lifeline-says-jaishankar-articleshow-z8229br) * [Quad Foreign Ministers Convene in New Delhi May 26 — newkerala.com](https://newkerala.com/news/a/new-delhi-host-quad-foreign-ministers-may-26-130.htm) * [Why the Quad Was Doomed From the Start — foreignpolicy.com](https://foreignpolicy.com/2026/05/22/quad-marco-rubio-visit-security-india-china-australia-japan-united-states) * [What's the purpose of the Quad? — asia.nikkei.com](https://asia.nikkei.com/opinion/what-s-the-purpose-of-the-quad) * ['Indo-Pacific to become a big energy lifeline': Jaishankar ahead of Quad foreign ministers' meeting — news.webindia123.com](https://news.webindia123.com/news/Articles/World/20260524/4453871.html) * [Rubio: The US wants to hold the QUAD summit separately or on the sidelines of the large-scale forum — walesun.com](https://www.walesun.com/politics/rubio-the-us-wants-to-hold-the-quad-summit-separately-or-on-the-sidelines-of-the-large-scale-forum/) * [TRT World - Marco Rubio vows to 'renew' Quad alliance during high-level New Delhi visit — trtworld.com](https://trtworld.com/article/ab694e57cff9) * [U.S. tries to reset strained ties with 'Quad' — military.com](https://military.com/rubio-arrives-in-india-ahead-of-quad-talks-as-us-tries-to-reset-strained-ties) * [So what if QUAD is diminished, BRICS is here to save the day — theweek.in](https://www.theweek.in/news/india/2026/05/22/so-what-if-quad-is-diminished-brics-is-here-to-save-the-day.html) * [Stalled Quad Leaders' Summit pushed to the forefront as ministers head to Delhi — hindustantimes.com](https://hindustantimes.com/india-news/west-asia-tensions-quad-summit-top-agenda-at-key-meet-in-delhi-101779463108244.html) * [Marco Rubio, Penny Wong and Toshimitsu Motegi to attend Quad talks in India — mid-day.com](https://www.mid-day.com/news/india-news/article/quad-foreign-ministers-to-meet-in-new-delhi-on-may-26-to-discuss-indo-pacific-strategy-23631711) * [Marco Rubio eyes Quad Summit as a standalone event, calls India 'perfectly aligned' with US — moneycontrol.com](https://moneycontrol.com/news/india/marco-rubio-eyes-quad-summit-as-a-standalone-event-calls-india-perfectly-aligned-with-us-13928788.html) * [Rubio to attend 'Quad' meeting in first visit to India: US embassy — khaleejtimes.com](https://khaleejtimes.com/world/asia/rubio-attend-quad-meeting-first-visit-india) * [Japan's Takaichi U-Turns on Extra Budget After Mideast Shock — timesofindia.indiatimes.com](https://timesofindia.indiatimes.com/world/us/marco-rubio-set-for-india-visit-amid-upcoming-quad-talks-in-new-delhi/articleshow/131207407.cms) * [India to host Quad FMs on May 26; Indo-Pacific, West Asia concerns likely on agenda — cnbctv18.com](https://cnbctv18.com/world/india-to-host-quad-fms-on-may-26-indo-pacific-west-asia-concerns-likely-on-agenda-ws-l-19911249.htm) * [India to host 'Quad' security alliance meeting on Tuesday — government.economictimes.indiatimes.com](https://government.economictimes.indiatimes.com/news/economy/india-to-host-quad-security-alliance-meeting-on-tuesday/131258728) * [Why the Quad Must Overcome Its Diplomatic Nadir — orfonline.org](https://orfonline.org/expert-speak/why-the-quad-must-overcome-its-diplomatic-nadir) * [Marco Rubio's visit to India emphasises importance of Quad: US Embassy — prokerala.com](https://prokerala.com/news/articles/a1765970.html) * [Quad Foreign Ministers to meet in Delhi on May 26; Marco Rubio to visit India — indianexpress.com](https://indianexpress.com/article/india/quad-foreign-ministers-meeting-delhi-marco-rubio-india-visit-10702512) * [Marco Rubio set for India visit amid upcoming Quad talks in New Delhi — indianexpress.com](https://indianexpress.com/article/india/quad-foreign-ministers-meeting-new-delhi-us-marco-rubio-india-visit-10703224) * [Rubio meets PM Modi today, will attend Quad huddle on May 26 — indianexpress.com](https://indianexpress.com/article/india/rubio-meets-pm-modi-will-attend-quad-huddle-on-may-26-10703525) * [India to Chair Quad Foreign Ministers Meeting — deccanchronicle.com](https://deccanchronicle.com/nation/india-to-chair-quad-foreign-ministers-meeting-1958468) * [ICYMI: BRICS, Quad and the new bipolar world — tribuneindia.com](https://tribuneindia.com/news/comment/icymithetribuneopinion-brics-quad-and-the-new-bipolar-world) * [CSOs call on the Quad to recognize Myanmar's crisis — eng.mizzima.com](https://eng.mizzima.com/2026/05/24/34409) * [U.S. tries to reset strained ties with 'Quad' — columbian.com](https://columbian.com/news/2026/may/24/u-s-tries-to-reset-strained-ties-with-quad) * [India is a 'great partner', 'great ally', trip to focus on energy, quad: Rubio — ianslive.in](https://ianslive.in/india-is-a-great-partner-great-ally-trip-to-focus-on-energy-quad-rubio--20260521215103) * [Rubio's India Visit to Boost Quad's Role in Indo-Pacific: US Embassy — newsable.asianetnews.com](https://newsable.asianetnews.com/world/rubios-india-visit-to-boost-quads-role-in-indopacific-us-embassy-articleshow-6tl4ykl) * [New Delhi to host Quad Foreign Ministers on May 26 — news.webindia123.com](https://news.webindia123.com/news/Articles/World/20260522/4453038.html) * [India to host 'Quad' security alliance meeting on Tuesday (ET) — government.economictimes.indiatimes.com](https://economictimes.indiatimes.com/news/defence/india-to-host-quad-security-alliance-meeting-on-tuesday/articleshow/131258414.cms) * [India to host Quad meet: West Asia fallout, Indo-Pacific situation top agenda — orissapost.com](https://orissapost.com/india-to-host-quad-meet-west-asia-fallout-indo-pacific-situation-top-agenda) * [China's discomfort is Quad's best validation — firstpost.com](https://firstpost.com/opinion/chinas-discomfort-is-quads-best-validation-14014346.html) * [Quad or BRICS? Inside New Delhi's Strategy to Maintain Independence — newsable.asianetnews.com](https://newsable.asianetnews.com/india/quad-or-brics-inside-new-delhi-strategy-to-maintain-independence-in-a-fractured-global-order-articleshow-idrwigg) * [The Quad question: Rejuvenate, neglect or abandon? — indianexpress.com](https://indianexpress.com/article/opinion/columns/quad-indo-pacific-geopolitics-life-support-trump-china-10701639) * [US Eyes Energy Exports, Quad Ties in India Visit — newkerala.com](https://newkerala.com/news/a/india-great-partnergreat-ally-trip-focus-energy-quad-343.htm) * [India to host 'Quad' security alliance meeting on Tuesday — government.economictimes.indiatimes.com](https://government.economictimes.indiatimes.com/news/economy/india-to-host-quad-security-alliance-meeting-on-tuesday/131258728) * [Japan's ruling party advances proposal to build national AI-blockchain financial system — theblock.co](https://theblock.co/post/401804/japan-ai-blockchain-proposal-ldp) * [Bank of England outlines tokenization, stablecoin vision for UK finance (mentions LDP) — theblock.co](https://www.theblock.co/post/401984/bank-of-england-tokenization-stablecoins) * [Japan's LDP approves plan for AI and blockchain-based next-generation financial system — digitaltoday.co.kr](https://www.digitaltoday.co.kr/en/view/56734/japans-ldp-approves-plan-for-ai-and-blockchain-based-next-generation-financial-system) * [Japan Pushes 24/7 Blockchain Financial System in New LDP Proposal — coinedition.com](https://coinedition.com/japan-pushes-24-7-blockchain-financial-system-in-new-ldp-proposal/) * [Japan's LDP Ruling Party Advances Proposal Supporting Tokenized Deposits and Yen Stablecoins — financefeeds.com](https://financefeeds.com/japans-ldp-tokenized-deposits-yen-stablecoins) * [LDP Approves AI-Blockchain Blueprint for Japan's Financial System — letsdatascience.com](https://letsdatascience.com/news/ldp-approves-ai-blockchain-blueprint-for-japans-financial-sy-b0924f3e) * [Japan's LDP Unveils AI-Blockchain Finance Plan to Promote Stablecoins, Tokenized Deposits — en.bloomingbit.io](https://en.bloomingbit.io/feed/news/112392) * [Japan's LDP Proposes Next-Generation Financial Infrastructure Powered by AI and Blockchain — cryptonews.net](https://cryptonews.net/news/blockchain/32883835/) * [Japan's LDP Proposes Next-Generation Financial Infrastructure Powered by AI and Blockchain (duplicate URL) — cryptonews.net](https://cryptonews.net/news/blockchain/32883835) * [Japan's LDP Proposes AI-Blockchain Financial Vision | Major Banks to Launch Stablecoin by 2027 — phemex.com](https://phemex.com/news/article/japans-ldp-proposes-aiblockchain-financial-vision-major-banks-to-launch-stablecoin-by-2027-83440) * [Blocks & Headlines: Today in Blockchain – May 19, 2026 — hipther.com](https://hipther.com/latest-news/2026/05/19/111982/blocks-headlines-today-in-blockchain-may-19-2026-pakistan-tokenization-japan-ldp-loyyal-and-quantum-knight/) * [Japan LDP Unveils AI and Blockchain Financial Vision — cryip.co](https://cryip.co/japan-ldp-ai-blockchain-financial-vision/) * [Japan AI blockchain finance: LDP backs yen token roadmap — en.cryptonomist.ch](https://en.cryptonomist.ch/2026/05/19/japan-ai-blockchain-finance-yen-token-roadmap) * [Japan AI blockchain finance: LDP backs yen token roadmap (duplicate URL) — en.cryptonomist.ch](https://en.cryptonomist.ch/2026/05/19/japan-ai-blockchain-finance-yen-token-roadmap/) * [Japan Reveal AI and Blockchain Finance Plan to Protect Digital Yen — news.edaface.com](https://news.edaface.com/2026/05/23/japan-reveal-ai-and-blockchain-finance-plan-to-protect-digital-yen/) * [The LDP's 'Digital Japan 2026' Policy Proposal — fintechobserver.com](https://www.fintechobserver.com/the-ldps-digital-japan-2026-policy-proposal/) * [Takaichi calls for extra budget amid Middle East shock — japantimes.co.jp](https://japantimes.co.jp/news/2026/05/18/japan/politics/japan-extra-budget) * [Japan's Takaichi U-Turns on Extra Budget After Mideast Shock — bloomberg.com](https://bloomberg.com/news/articles/2026-05-18/japan-s-takaichi-set-to-announce-extra-budget-amid-mideast-shock) * [Takaichi eager to limit debt finance for extra budget on energy shock — asahi.com](https://asahi.com/ajw/articles/16581282) * [Takaichi mulls extra budget for electricity and gas subsidies — asahi.com](https://asahi.com/ajw/articles/16572246) * [Gov't eyes ¥3 tril extra budget to ease energy cost burden — japantoday.com](https://japantoday.com/category/politics/japan-mulls-tapping-500-bil.-yen-for-summer-electricity-gas-subsidies) * [Takaichi wants food consumption tax freeze 'as soon as possible' — japantoday.com](https://japantoday.com/category/politics/update3-japan-pm-wants-food-consumption-tax-freeze-as-soon-as-possible) * [Tensions in Japan's supplemental budget debate — asiatimes.com](https://asiatimes.com/2026/05/tensions-in-japans-supplemental-budget-debate/) * [Episode 2: Japan's Energy Security and the Hormuz Crisis — observingjapan.substack.com](https://observingjapan.substack.com/p/episode-2-japans-energy-security) * [Japan's automotive industry is driving — slowly — toward a greener future — japantimes.co.jp](https://www.japantimes.co.jp/environment/2026/05/24/sustainability/auto-industry-decarbonization/) * [Ethylene plant operating rate hits record low in Japan — japantimes.co.jp](https://www.japantimes.co.jp/business/2026/05/22/ethylene-plant-operating-rate-low/) * [China squeezes Japan over rare earths in repeat of 2010 showdown — reuters.com](https://www.reuters.com/world/asia-pacific/china-squeezes-japan-over-rare-earths-repeat-2010-showdown-2026-05-22/) * [Japan trade minister holds brief talks with Chinese counterpart amid diplomatic row — japantoday.com](https://japantoday.com/category/politics/japan-trade-minister-holds-brief-talks-with-chinese-counterpart-amid-diplomatic-row) * [Japan's Akazawa Says He Spoke Briefly With China Commerce Minister — livemint.com](https://www.livemint.com/companies/japans-akazawa-says-he-spoke-briefly-with-china-commerce-minister-11779586974570.html) * [Japan envoy in China vows 'best efforts' to realise Takaichi-Xi leaders' summit at APEC — straitstimes.com](https://www.straitstimes.com/asia/east-asia/interview-japan-envoy-in-china-vows-best-efforts-to-realize-leaders-summit-at-apec) * [Ambasciatore a Pechino Kanasugi: al lavoro per incontro Takaichi-Xi a margine del vertice Apec — agenzianova.com](https://www.agenzianova.com/news/ambasciatore-a-pechino-kanasugi-al-lavoro-per-incontro-takaichi-xi-a-margine-del-vertice-apec/) * [Japan ruling LDP's new group launched to back PM Takaichi's policy agendas — mainichi.jp](https://mainichi.jp/english/articles/20260522/p2g/00m/0na/002000c) * [New LDP group launched to back PM Takaichi's policy agendas — japantoday.com](https://japantoday.com/category/politics/japan-ruling-ldp%27s-new-group-launched-to-back-pm-takaichi%27s-policy-agendas?comment-order=latest) * [What will the LDP's new National Power Research Group become? — japantimes.co.jp](https://www.japantimes.co.jp/news/2026/05/22/japan/politics/liberal-democratic-party-national-power-research-group/) * [LDP's Japan Is Back Group Secures 83% Membership — chosun.com](https://www.chosun.com/english/world-en/2026/05/22/LW3QC6VB5ZEEDBBZPIHUOIZX4Q/) * [Trump's First Post-Summit Call Went to Takaichi, U.S. Envoy Says (group launch context) — en.sedaily.com](https://en.sedaily.com/finance/2026/05/21/trumps-first-post-summit-call-went-to-takaichi-us-envoy-says) * [Bank of Japan chief says he agreed to maintain dialogue with PM, no talk of June rate hike — businesstimes.com.sg](https://www.businesstimes.com.sg/companies-markets/banking-finance/bank-japans-ueda-says-he-met-pm-takaichi-explained-thinking-monetary-policy) * [BOJ's Ueda meets PM Takaichi, discusses monetary policy stance — investing.com](https://www.investing.com/news/economy-news/bojs-ueda-meets-pm-takaichi-discusses-monetary-policy-stance-93CH-4706119) * [BOJ governor Ueda says discussed economic, market events with prime minister Takaichi — investinglive.com](https://investinglive.com/centralbank/boj-governor-ueda-says-discussed-economic-market-events-with-prime-minister-takaichi-20260522/) * [Takaichi Urges BOJ To Take Appropriate Steps On Inflation — japannews24.com](https://japannews24.com/takaichi-urges-boj-to-take-appropriate-steps-on-inflation/) * [ベッセント長官がXで「為替介入やめろ。日銀利上げしろ」と植田総裁らにクギ — agora-web.jp](https://agora-web.jp/archives/260520000808.html) * [Japan inflation cools to four-year low as subsidies ease living costs amid energy turmoil — firstpost.com](https://www.firstpost.com/business/japan-inflation-four-year-low-energy-subsidies-boj-rate-hike-oil-prices-april-2026-14013870.html) * [Japan Core Inflation Hits 4Y Low, Energy Shock Rebound Eyed — gurutrade.com](https://www.gurutrade.com/news/japan-core-inflation-hits-4y-low-energy-shock-rebound-eyed-1779441883.html) * [Japan core inflation softens to over four year low, weakening case for BOJ rate hike — indiavision.com](https://www.indiavision.com/business/japan-core-inflation-softens-to-over-four-year-low-weakening-case-for-boj-rate-hike/602989/) * [Japan's inflation eases as Takaichi looks to lower living expenses — cnbctv18.com](https://www.cnbctv18.com/economy/japans-inflation-eases-as-takaichi-looks-to-lower-living-expenses-ws-l-19911240.htm) * [Japan exports rise for eighth month despite supply disruptions — reuters.com](https://www.reuters.com/world/asia-pacific/japan-april-exports-rise-148-yearyear-despite-middle-east-conflict-2026-05-21/) * [Takaichi, Lee forge energy pact amid uncertainty in Middle East — asahi.com](https://asahi.com/ajw/articles/16575818) * [Are Japan-South Korea relations entering a new era of cooperation? — csmonitor.com](https://www.csmonitor.com/World/Asia-Pacific/2026/0522/This-unlikely-friendship-could-herald-new-era-of-South-Korea-Japan-cooperation) * [Samsung strike deal, Starbucks backlash and Lee-Takaichi summit — Ep. 133 — koreapro.org](https://koreapro.org/2026/05/samsung-strike-deal-starbucks-backlash-and-lee-takaichi-summit-ep-133/) * [Japan and South Korea agree to DNA tests on remains from wartime mine accident — nhk.or.jp](https://www3.nhk.or.jp/nhkworld/en/news/20260518_16/) * [How Japan's Defense Will Change: LDP Proposal Reveals Interceptor Drones, Pacific Surveillance, and Next-Gen Submarines — kantenna.com](https://kantenna.com/topic/japan-security-strategy-2026-interceptor-drones-pacific-defense) * [Japan LDP draft calls for interceptor drones, long-term combat capability — english.kyodonews.net](https://english.kyodonews.net/articles/-/76243) * [Japan's ruling LDP drafts proposal to revise key security documents — chinadailyasia.com](https://www.chinadailyasia.com/article/633668) * [Philippine's Marcos to receive one of Japan's highest decorations — asia.nikkei.com](https://asia.nikkei.com/politics/international-relations/philippine-s-marcos-to-receive-one-of-japan-s-highest-decorations) * [Marcos' Japan visit and the China equation — manilatimes.net](https://www.manilatimes.net/2026/05/23/opinion/contributors/marcos-japan-visit-and-the-china-equation/2350054) * [Marcos to tackle security in meeting with Japanese prime minister — manilatimes.net](https://www.manilatimes.net/2026/05/19/news/marcos-to-tackle-security-in-meeting-with-japanese-prime-minister/2346708) * [Albanian PM meets Takaichi — japantoday.com](https://japantoday.com/category/picture-of-the-day/albanian-pm-meets-takaichi) * [PM Rama of Albania Meets Japanese Prime Minister In Tokyo — reutersconnect.com](https://www.reutersconnect.com/item/pm-rama-of-albania-meets-japanese-prime-minister-in-tokyo/dGFnOnJldXRlcnMuY29tLDIwMjY6bmV3c21sX01UMVpVTUEwMDBaRkVKQVk) * [Kryeministrja e Japonisë: Mbështesim fuqishëm anëtarësimin e Shqipërisë në BE — 24-ore.com](https://24-ore.com/kryeministrja-e-japonise-mbeshtesim-fuqishem-anetaresimin-e-shqiperise-ne-be-rama-bashkepunim-i-forte-per-stabilitetin-dhe-vizionin-indo-paqesor/) * [Rama pritet me ceremoni zyrtare në Tokio nga homologia Takaichi — 24-ore.com](https://24-ore.com/rama-pritet-me-ceremoni-zyrtare-ne-tokio-nga-homologia-takaichi-hap-i-re-ne-marredheniet-shqiperi-japoni/) * [Takaichi considering new quota for growth investment — japantimes.co.jp](https://www.japantimes.co.jp/business/2026/05/23/takaichi-quota-growth-investment/) * [Japan PM Takaichi eyeing new quota for growth investment — nationthailand.com](https://www.nationthailand.com/blogs/news/world/40066575) * [Readout of the Secretary-General's audience with His Majesty Naruhito, Emperor of Japan — un.org](https://www.un.org/sg/en/content/sg/readouts/2026-05-20/readout-of-the-secretary-generals-audience-his-majesty-naruhito-emperor-of-japan) * [Emperor Naruhito and Empress Masako Attend JAID's 100th Anniversary Ceremony — newmyroyals.com](https://www.newmyroyals.com/2026/05/emperor-naruhito-and-empress-masako-jaid.html) * [The Emperor and Empress Attend the 76th National Tree Planting Festival — newmyroyals.com](https://www.newmyroyals.com/2026/05/the-emperor-and-empress-attend-76th.html) * [Japan's Princess Aiko attends Laos Festival in Tokyo — nhk.or.jp](https://www3.nhk.or.jp/nhkworld/en/news/20260524_02/) * [Melanie Brock and Debra Hazelton receive Japan's Order of the Rising Sun honour — afr.com](https://www.afr.com/world/asia/what-this-aussie-business-leader-took-to-japan-s-imperial-palace-20260519-p5zym2) * [An Imperial Week in Photos: Grand Cordon Ceremony, Rice Planting, and Red Cross Convention — japan-forward.com](https://japan-forward.com/imperial-family-grand-cordon-ceremony-rice-planting-red-cross/) * [The Dutch King and Queen Are the First Royals to Confirm They Are Attending the World Cup — townandcountrymag.com](https://www.townandcountrymag.com/society/tradition/a71374188/king-willem-alexander-queen-maxima-netherlands-royals-2026-world-cup/) * [LDP, JIP and DPP seek emergency clause in Constitution — japantimes.co.jp](https://www.japantimes.co.jp/news/2026/05/24/japan/politics/ldp-jip-dpp-emergency-clause-constitution/) * [LDP, JIP and DPP seek emergency clause in Constitution (vocab duplicate) — japantimes.co.jp](https://japantimes.co.jp/news/2026/05/24/japan/politics/ldp-jip-dpp-emergency-clause-constitution) * [LDP calls for mandatory acquisition of My Number cards — japantimes.co.jp](https://japantimes.co.jp/news/2026/05/20/japan/my-number-cards-acquisition) * [LDP calls for mandatory acquisition of My Number cards (vocab duplicate) — japantimes.co.jp](https://www.japantimes.co.jp/news/2026/05/20/japan/my-number-cards-acquisition/) * [Pokémon card scalping prompts plans for IDV with Japan's My Number — biometricupdate.com](https://www.biometricupdate.com/202605/pokemon-card-scalping-prompts-plans-for-idv-with-japans-my-number) * [Japan approves joint custody for divorced parents after 80 years — prismnews.com](https://www.prismnews.com/news/japan-approves-joint-custody-for-divorced-parents-after-80) * [Team Mirai Leader Says He Is Ready to Serve as Takaichi's 'AI Tutor' — japan-forward.com](https://japan-forward.com/team-mirai-leader-says-he-is-ready-to-serve-as-takaichis-ai-tutor/) * [みらい安野氏、首相へAIカテキョ「準備する」 初の党首討論 — japan-forward.com](https://japan-forward.com/ja/team-mirai-leader-says-he-is-ready-to-serve-as-takaichis-ai-tutor/) * [NEC、経団連「第4回スタートアップフレンドリースコアリング」で5位にランクイン — prtimes.jp](https://prtimes.jp/main/html/rd/p/000001334.000078149.html) * [電通グループ、経団連「第4回 スタートアップフレンドリースコアリング」で3年連続で総合2位を獲得 — group.dentsu.com](https://www.group.dentsu.com/jp/news/release/001663.html) * [Japón y Ecuador: fortaleciendo la cooperación bilateral y proyectos estratégicos — expreso.ec](https://www.expreso.ec/opinion/japon-y-ecuador-fortaleciendo-la-cooperacion-bilateral-y-proyectos-estrategicos-282448.html) * [Takaichi denies ordering defamatory videos against LDP leadership rivals — noticias.jp](https://noticias.jp/takaichi-niega-haber-encargado-videos-difamatorios-a-terceros/) * [Japan says it will crack down harder on illegal overstaying by foreign nationals — japantimes.co.jp](https://www.japantimes.co.jp/news/2026/05/22/japan/zero-plan-foreign-nationals-measures/) * [Opposition party uncertainty after LDP landslide: which party represents the opposition? — japantoday.com](https://japantoday.com/category/politics/) *** ### South Korea flag South Korea A government-mediated deal on May 21 averted the Samsung chip workers' strike, which had threatened to wipe 30-100 trillion won from the economy, and sent Samsung shares 8.5% higher to a record high. The deal gave semiconductor workers a bonus worth 10.5% of the division's operating profit — mostly in stock, conditional on profit milestones — with terms more favourable to management than the rival SK Hynix settlement. A worker earning 80 million won annually stands to receive roughly 626 million won, compared with SK Hynix's 700 million won-plus packages paid in cash. Lee Jae-myung, the president, rebuked the union at cabinet for demanding pre-tax profit sharing, signalling the government would invoke emergency arbitration if needed. Union members are voting on ratification through May 27. The settlement removes the biggest immediate risk to Korea's AI chip output — but not all of it: foundry and packaging workers, resentful that memory-division colleagues got the bulk of the payout, have begun work slowdowns that analysts say could affect high-bandwidth memory delivery schedules. The broader market picture is less settled than Samsung's surge suggests. Foreign investors sold \$13.2 billion of Korean equities last week — the largest outflow in the exchange's history and the second-largest in emerging Asia outside China — forcing the exchange to halt programme trading after Korea Composite Stock Price Index (KOSPI) 200 futures fell 5%. Korean retail investors absorbed the selling, buying \$14.1 billion in the same period. Citi called the market "much more overbought than in the U.S." and cut half its Korea position; Goldman Sachs held its ground, maintaining a KOSPI target of 7,000 and calling Korea its "highest-conviction view in Asia." The won fell to 1,517 per dollar on May 22, its lowest in 50 days, before the finance ministry and the Bank of Korea issued a joint verbal warning against "excessive" moves. Rather than hiking — the prior expectation — the Bank is now expected to hold at 2.5% for an eighth straight meeting under Shin Hyun-song, the incoming governor, while using published rate projections to signal one or two hikes within six months. Producer prices hit a 27-year high owing to Middle East oil costs; Seoul apartment prices are rising at their fastest weekly pace since January. Even as the economic picture stabilised, Mr Lee made the week's most unexpected diplomatic move. At a May 20 cabinet meeting, he called Benjamin Netanyahu, the Israeli prime minister, a "war criminal" under an International Criminal Court (ICC) warrant, and directed his national security director to assess whether Seoul was obliged to arrest him should he visit Korea. The trigger was Israel's detention of Korean nationals aboard a Gaza-bound aid flotilla in international waters, which Mr Lee called "kidnapping" and "way out of line." The detained nationals were released the following day. Korea ratified the court's Rome Statute in 2002 and carries genuine legal obligations under it. Whether this was a principled stand or a calculation nine days before elections — or both — the public record now exists: if Mr Netanyahu transits Seoul, the government will face a clear choice between ICC obligations and its alliances. The Netanyahu episode came in a week when Korea was otherwise deepening its regional ties. At his hometown of Andong, Mr Lee hosted Sanae Takaichi, the Japanese prime minister, for their sixth summit. The meeting produced the most concrete Korea-Japan energy security results yet under this administration: agreed frameworks for expanding liquefied natural gas and crude oil stockpiling, petroleum product swap arrangements designed to address their shared vulnerability to any disruption along the Hormuz and Malacca routes, and an upgrade of vice-ministerial security talks that Mr Lee described as "meaningful progress." Both leaders said separately that Washington's focus on the Middle East could reduce its Indo-Pacific presence — a rare admission that the relationship is partly insurance against American pullback. That same week, Koo Yun-cheol, the deputy prime minister, announced \$6 billion in emergency funding — \$3 billion each from the Korea Export-Import Bank and Korea Trade Insurance Corporation — for Middle Eastern partner economies squeezed by the Iran war. At home, the election environment tightened faster than polling had suggested. The Daegu mayoral race, once a 7-point Democratic Party of Korea (DPK) lead in late April, is now within 1 percentage point: Kim Boo-kyum of the DPK at 40%, People Power Party (PPP) challenger Choo Kyung-ho at 39%, according to a Korea Broadcasting System/Korea Research survey of 800 respondents. Park Geun-hye, the former president impeached and convicted on corruption charges in 2017, appeared at a Chilseong Market rally for Mr Choo — her first campaign activity since her fall from office — drawing hundreds of supporters, some chanting her name. The PPP is deploying her as a consolidation figure in its historic heartland; how much pull she commands outside Daegu is less clear. In the Busan North by-election, Han Dong-hoon, a former PPP leader running as an independent, leads at 34.6% against the DPK's candidate at 32.9% and the PPP's own candidate at 20.5% — a three-way race that could hand either major party an unexpected result. Mr Lee's approval holds at 64-66%, but the ruling party's June 3 election preference has fallen three consecutive weeks, from 58% in late April to 52% now. A marketing controversy became a political fight. Starbucks Korea ran a tumbler promotion on May 18 — the anniversary of the 1980 Gwangju Uprising — under the name "Tank Day," with imagery critics read as invoking the military suppression of the event. Mr Lee condemned it on X and called for "moral, administrative, legal and political responsibility." Jeong Yong-jin, Shinsegae's chairman, issued a public apology; Starbucks Korea's head was fired; government ministries and the civil service union called boycotts. Jang Dong-hyeok, the PPP chairman, accused Mr Lee of "collective bullying" and "another form of violence," framing the government's response as state overreach that turns a consumer issue into ideological warfare. The Gwangju uprising is the DPK's founding narrative — rallying around its defence fires the progressive base. The PPP's counter-framing may do the same for conservatives in exactly the races that are now competitive. On the security side, Hanwha Aerospace unveiled the KAAV-II prototype — a next-generation amphibious assault vehicle with water speed above 20km/h against the legacy model's 13.2km/h, a 40mm autocannon capable of 85-degree elevation for anti-drone engagement, and an initial production timeline of 2029 against approved funding of roughly \$1.78 billion. The Defence Ministry's first unification white paper under Mr Lee formalised the "peaceful coexistence" doctrine: three explicit principles — respect the North Korean regime, rule out absorption unification, cease hostile acts — with sharply reduced references to both unification and North Korean human rights compared with previous editions. The monitoring group 38 North reads North Korea's concurrent constitutional revision differently: Pyongyang is preparing for hostile two-state coexistence, not the peaceful kind, with new constitutional provisions for the defence industry and Kim Jong Un convening a military-wide commanders' meeting to reinforce front-line units along the southern border. Seoul is offering accommodation; Pyongyang is not interested in the same arrangement. * **Samsung averts 18-day strike with profit-sharing deal, but bonus inequality triggers internal fractures** — Samsung Electronics reached a government-mediated provisional wage agreement with its largest union on May 21, averting a planned 18-day strike by roughly 48,000 workers. The deal grants semiconductor division employees bonuses equivalent to 10.5% of the division's operating profit — potentially up to 600 million won per worker — while workers in other divisions received far smaller payouts, triggering internal resentment and work slowdowns in foundry and packaging units as union members voted on the agreement through May 24. The Bank of Korea had previously warned the planned strike could cut 0.5 percentage points from 2026 growth. Lee Jae-myung, the president, rebuked the union at a cabinet meeting for demanding pre-tax profit sharing, signalling the government could invoke emergency arbitration if needed. *([aljazeera.com](https://www.nytimes.com/2026/05/21/business/samsung-strike-ai-chips.html))* * **Lee attends May 18 Gwangju Uprising 46th anniversary, pledges to enshrine democratic spirit in Constitution** — Lee Jae-myung, the president, attended the 46th anniversary ceremony of the May 18 Gwangju Democratization Movement on May 18, pledging to 'definitively' cement the uprising's democratic spirit in the Constitution and secure recognition for overlooked participants. He also visited victims' graves and called for stern punishment of those who glorify state violence or spread disinformation about the uprising — including the 'North Korean involvement theory.' The Democratic Party separately launched legislation to eliminate statutes of limitations for state violence crimes. *([en.yna.co.kr](https://koreaherald.com/article/10740084))* * **June 3 local elections campaign officially underway with over 7,800 candidates; DPK and PPP contest key mayoralties** — South Korea's June 3 local election campaign officially began on May 21, with over 7,800 candidates registered across the country. The ruling Democratic Party of Korea (DPK) cast the elections as a mandate for the Lee administration, while internal disputes surfaced — a DPK mayoral candidate in Ulsan suspended his participation in a unified primary over disputed polling. In Daegu, traditionally a conservative stronghold, the DPK candidate's once-favourable position tightened as the People Power Party (PPP) rallied. Former PPP leader Han Dong-hoon entered the Busan North district by-election as an independent, urging conservatives not to back the PPP candidate. A DPK gubernatorial campaign filed criminal complaints against PPP leader Jang Dong-hyuk. *([koreatimes.co.kr](https://www.koreatimes.co.kr/southkorea/politics/20260521/campaign-officially-begins-for-june-3-elections-with-7800-candidates))* * **Lee marks 17th anniversary of Roh Moo-hyun's death, pledging to complete unfinished reform agenda** — Lee Jae-myung, the president, attended the 17th anniversary memorial ceremony for former president Roh Moo-hyun on May 23 at Bongha Village in Gimhae, South Gyeongsang Province, alongside Roh's widow, son, and Moon Jae-in, a former president. Lee pledged to 'resolutely push forward reforms that remove unfair practices and privileges' and to complete Roh's vision of a society founded on fairness and inclusion. The ceremony was covered by multiple Korean and international outlets. *([koreaherald.com](https://koreaherald.com/article/10754931))* * **Future of Camp Humphreys and American-South Korean alliance under scrutiny as operational control transfer debate intensifies** — Media attention focused on the future of the American-South Korean military alliance this week, with a Guardian feature examining Camp Humphreys — the largest American overseas military base — amid Trump's moves to withdraw troops from other allied countries. The Diplomat published an analysis of key operational questions for a future operational control (OPCON) transfer, including South Korean armed-forces command structure reforms. The American embassy separately noted that Under Secretary Hooker would lead an interagency delegation to Seoul to launch bilateral working groups implementing understandings from Trump's October 2025 visit. *([theguardian.com](https://www.theguardian.com/world/2026/may/22/camp-humphreys-south-korea-us-military-base))* * **Lee's approval rating holds in the 60s; DPK leads PPP by over 20 points ahead of June 3 elections** — Multiple polls this week showed Lee Jae-myung, the president, with an approval rating between 60.5% and 66%, rebounding after a brief dip attributed partly to positive assessments of economic policy. The ruling Democratic Party of Korea (DPK) maintained approximately 45% party support, while the People Power Party (PPP) fell to around 22%. Polls on local election preferences showed DPK candidates favoured by 46% versus 33% for opposition candidates, suggesting a favourable environment for the governing party ahead of the June 3 vote. *([koreatimes.co.kr](https://koreatimes.co.kr/southkorea/20260522/lees-approval-rating-rebounds-to-64-poll))* * **South Korea's digital finance ecosystem advances: Dunamu attracts Hanwha investment, banks explore stablecoins** — Hanwha Investment Securities agreed to acquire an additional \$433 million stake in Dunamu, operator of South Korea's largest cryptocurrency exchange Upbit, as tokenised securities gained attention. South Korea's Financial Services Commission was reviewing Hana Bank's separate planned \$668 million investment in Dunamu under banking-commerce separation rules. iM Bank completed a proof-of-concept for a won stablecoin, and an opinion piece called for progress on a digital asset framework law that has stalled for two years. *([en.bloomingbit.io](https://en.bloomingbit.io/feed/news/112579))* * **Special counsel questions former NIS deputy chief over alleged message justifying martial law to CIA** — The special counsel team investigating the December 2024 martial law incident questioned former National Intelligence Service (NIS) First Deputy Director Hong Jang-won on May 22 over allegations that he delivered a message to the United States conveying justification for the martial law declaration. Hong denied the allegations. The special counsel has charged Hong, former NIS chief Cho Tae-yong, and four other former NIS political appointees on insurrection-related counts, with the investigation expanding following an April raid on NIS headquarters. *([khan.co.kr](https://khan.co.kr/en/article/202605221332027))* * [Why are nearly 50,000 Samsung workers about to strike in South Korea? — aljazeera.com](https://www.aljazeera.com/news/2026/5/20/why-are-nearly-50000-samsung-workers-about-to-strike-in-south-korea) * [Lee rebukes Samsung union over profit-sharing demand, signals govt. intervention — koreaherald.com](https://koreaherald.com/article/10742050) * [Samsung chief apologizes amid labor dispute — donga.com](https://donga.com/en/article/all/20260518/6230920/1) * [BOK warns Samsung strike could cut growth by 0.5%p — koreaherald.com](https://www.koreaherald.com/article/10741033) * [Samsung's deal with union hailed as a victory as bonuses less generous than SK Hynix's — reuters.com](https://www.reuters.com/business/world-at-work/samsungs-deal-with-union-hailed-victory-bonuses-less-generous-than-sk-hynixs-2026-05-21/) * [Samsung workers begin voting on pay deal, some non-chip employees to oppose it — reuters.com](https://www.reuters.com/business/world-at-work/samsung-electronics-south-korean-union-begin-vote-pay-agreement-2026-05-22/) * [Samsung Chip Workers Face Colleagues' Resentment Over Bonus Deal — bloomberg.com](https://www.bloomberg.com/news/articles/2026-05-22/samsung-chip-workers-face-colleagues-resentment-over-bonus-deal) * [Samsung Averts a Walkout With Big Bonuses, but Discord Over A.I. Profits Brews — nytimes.com](https://www.nytimes.com/2026/05/21/business/samsung-strike-ai-chips.html) * [Samsung Electronics union vote begins amid backlash from DX division — upi.com](https://www.upi.com/Top_News/World-News/2026/05/22/samsung-labor-unions-sharp-division/8071779495257/) * [Samsung union to start vote on tentative wage deal — m.economictimes.com](https://m.economictimes.com/tech/technology/samsung-union-to-start-vote-on-tentative-wage-deal/articleshow/131255547.cms) * [Two-thirds of Samsung union members cast ballots on 1st day of wage vote — koreaherald.com](https://www.koreaherald.com/article/10744548) * [Samsung Electronics Union Chief Dismisses 'Political Rumors'... 'Confidence Vote Set for June' — asiae.co.kr](https://www.asiae.co.kr/en/article/2026052414071778173) * [Samsung's \$400,000 payout for memory workers sparks revolt as other divisions get only \$4,000 — tomshardware.com](https://www.tomshardware.com/tech-industry/samsungs-bonus-dispute-spreads-to-chip-packaging-divisions-threatening-hbm-delivery-schedules) * [Samsung strike could cut South Korean economy by 0.5 pc point: Bank of Korea — dtnext.in](https://www.dtnext.in/news/business/samsung-strike-could-cut-south-korean-economy-by-05-pc-point-bank-of-korea) * [President Lee Jae Myung: 'Pursuing union interests should have a reasonable limit' — khan.co.kr](https://khan.co.kr/en/article/202605201530017) * [S. Korea's currency makes slight gain on optimism over possible Iran deal — en.yna.co.kr](https://en.yna.co.kr/view/AEN20260521009400320) * [President Lee Jae Myung slams Starbucks Korea over 'Tank Day' promotion — koreaherald.com](https://www.koreaherald.com/article/10740423) * [President Lee Jae Myung to Starbucks over 'Tank Day': 'How can someone wearing the guise of a human do that?' — khan.co.kr](https://khan.co.kr/en/article/202605201613007) * ['Poisonous mushrooms' insulting May 18 victims must be rooted out: Lee — koreaherald.com](https://koreaherald.com/article/10742905) * [President Lee Jae Myung Visits Seoul Areas, Remarks on Coffee Controversy — chosun.com](https://www.chosun.com/english/national-en/2026/05/21/JL55Y6AEIBEU3I4IZQESHUNKRM/) * [People Power Party Leader Criticizes Government's Starbucks Boycott Role — chosun.com](https://www.chosun.com/english/national-en/2026/05/22/NHXIP6VX5JHLHKOMO443QLGHLQ/) * ["An immoral act by a vicious huckster"···President Lee Jae Myung this time harshly denounces the Starbucks '4·16 Siren Event' — khan.co.kr](https://khan.co.kr/en/article/202605232140017) * [Opposition Unites Against Lee's Starbucks Criticism: 'Enough Already' — en.sedaily.com](https://en.sedaily.com/finance/2026/05/24/opposition-unites-against-lees-starbucks-criticism-enough) * [Starbucks Korea's 'Tank Day' gaffe spirals into political clash over boycott calls — koreatimes.co.kr](https://www.koreatimes.co.kr/southkorea/politics/20260524/starbucks-koreas-tank-day-gaffe-spirals-into-political-clash-over-boycott-calls) * [Starbucks Row Erupts: Ruling Party Defends Lee, Opposition Slams 'People's Tribunal' — en.sedaily.com](https://en.sedaily.com/finance/2026/05/24/starbucks-row-erupts-ruling-party-defends-lee-opposition) * [South Korea: Starbucks sacks head over controversial 'Tank Day' campaign; President Lee Jae Myung demands apology — telegraphindia.com](https://www.telegraphindia.com/world/south-korea-starbucks-sacks-head-over-controversial-tank-day-campaign-president-lee-jae-myung-demands-apology/cid/2161314) * [From consumers to politicians, Starbucks Korea faces growing boycott — koreatimes.co.kr](https://www.koreatimes.co.kr/southkorea/society/20260520/from-consumers-to-politicians-starbucks-korea-faces-growing-boycott) * [South Korea: Hawkish BoK tilt supports Won – ING — fxstreet.com](https://www.fxstreet.com/news/south-korea-hawkish-bok-tilt-supports-won-ing-202605221734) * [Weekly Economic, Crypto Calendar: US April Core PCE in Focus — en.bloomingbit.io](https://en.bloomingbit.io/feed/news/112756) * [Asia Economic Outlook: BOK Hawkish Hold, Japan Inflation Dip, China Industrial Profits in Focus — indexbox.io](https://www.indexbox.io/blog/bank-of-korea-expected-to-hold-rate-steady-japan-cpi-soft-china-data-quiet/) * [Bank of Korea Likely to Hold Rate for 8th Time; US April PCE in Focus — en.sedaily.com](https://en.sedaily.com/finance/2026/05/24/bank-of-korea-likely-to-hold-rate-for-8th-time-us-april-pce) * [South Korea Issues Verbal FX Warning as Won Closes at 1,517.2 Per Dollar — en.bloomingbit.io](https://en.bloomingbit.io/feed/news/112665) * [Korean Won Nears 1,520 Per Dollar; Authorities Vow 'Decisive Action If Needed' — en.sedaily.com](https://en.sedaily.com/finance/2026/05/22/korean-won-nears-1520-per-dollar-authorities-issue-verbal) * [S. Korea Household Lending Accelerates Amid Seoul Housing Rally — bloomberg.com](https://www.bloomberg.com/news/articles/2026-05-19/s-korea-household-lending-accelerates-amid-seoul-housing-rally) * [Fed's Warsh Unlikely to Cut Rates Soon Despite Trump Pressure — chosun.com](https://www.chosun.com/english/market-money-en/2026/05/24/3ERTALKPDJF7RJZXNR4FQV3GS4/) * [Producer Prices Surge, Bank of Korea Weighs Rate Hike — chosun.com](https://www.chosun.com/english/market-money-en/2026/05/21/YFUBE2PGGJA7BL6SAM7O73XGEE/) * [Amid soaring global government bond rates, South Korea's interest rate on treasury bonds has risen steeper than U.S. — mk.co.kr](https://mk.co.kr/en/economy/12053242) * [Seoul apartment price rally gains pace ahead of Bank of Korea decision — businesstimes.com.sg](https://www.businesstimes.com.sg/international/seoul-apartment-price-rally-gains-pace-ahead-bank-korea-decision) * [South Korea Consumer Confidence Spikes In May - BoK — rttnews.com](https://www.rttnews.com/3654625/south-korea-consumer-confidence-spikes-in-may-bok.aspx) * [Korea to Overhaul Consumer Price Index Basket After Five Years — en.sedaily.com](https://en.sedaily.com/finance/2026/05/23/korea-to-overhaul-consumer-price-index-basket-after-five) * [Korean won's stay above 1,500 puzzles investors despite record current account surplus — kedglobal.com](https://www.kedglobal.com/economy/newsView/ked202605190002) * [Why the Won Stays Near 1,500 Per Dollar Despite Korea's Dollar Windfall — en.bloomingbit.io](https://en.bloomingbit.io/feed/news/112667) * [Home-Backed Loans Surge in Q1 as 30s, 40s Drive 70% Growth — chosun.com](https://www.chosun.com/english/market-money-en/2026/05/22/KWV35TPFWFFH5NYSXNI67ACJAY/) * [Lee pays tribute to victims of Gwangju uprising — en.yna.co.kr](https://en.yna.co.kr/view/PYH20260518195900320) * [Lee vows to cement May 18 democratic spirit in Constitution — koreaherald.com](https://koreaherald.com/article/10740084) * [S. Korea marks anniv. of 1980 pro-democracy uprising — en.yna.co.kr](https://en.yna.co.kr/view/PYH20260518082000315?section=image%2Fgeneral) * [President Lee Jae-myung: 'Acts Insulting May 18 or Glorifying State Violence Must Be Strongly Punished' — asiae.co.kr](https://www.asiae.co.kr/en/article/honam/2026052114352909079) * [Lee calls for stern punishment for defaming victims of state-led atrocities — koreatimes.co.kr](https://koreatimes.co.kr/southkorea/politics/20260521/lee-calls-for-stern-punishment-for-defaming-victims-of-state-led-atrocities) * [President Lee: 'We must uproot the poisonous mushrooms that ridicule victims of state violence'…Ruling party launches legislation — khan.co.kr](https://khan.co.kr/en/article/202605211638007) * [South Korea and Japan agree to shore up energy cooperation, strengthen security ties — reuters.com](https://www.reuters.com/business/energy/south-korea-japan-agree-boost-energy-cooperation-strengthen-security-ties-2026-05-19/) * [Iran war and Trump's tariffs push U.S. allies South Korea and Japan closer together — nbcnews.com](https://www.nbcnews.com/world/asia/south-korea-japan-lee-jae-myung-sanae-takaichi-rcna345836) * [Japan Prime Minister Sanae Takaichi, S. Korea President Lee Jae Myung Hail Historic Milestone in Bilateral Cooperation — japannews.yomiuri.co.jp](https://japannews.yomiuri.co.jp/world/asia-pacific/20260520-328490/) * [Lee and Takaichi deepen ties at Andong dinner without red pepper — chosun.com](https://www.chosun.com/english/national-en/2026/05/19/SU2R5Q5Z6RAIZNN2EZXYUHYWKU/) * [South Korea's Lee Jae-myung and Japan PM Takaichi hold landmark hometown summit — english.mathrubhumi.com](https://english.mathrubhumi.com/multimedia/videos/south-korea-lee-jae-myung-japan-pm-sanae-takaichi-meeting-q6rpou9i) * [South Korea's Lee criticises Israel detentions, says actions 'way out of line' — reuters.com](https://www.reuters.com/world/asia-pacific/south-koreas-lee-criticises-israel-detentions-says-actions-way-out-line-2026-05-20/) * [South Korea says nationals held by Israel released after Gaza aid vessel seizure — reuters.com](https://www.reuters.com/world/asia-pacific/south-korea-says-nationals-held-by-israel-released-after-gaza-aid-vessel-seizure-2026-05-21/) * [South Korea's Lee Jae-myung accuses Israel of illegally detaining activists; Lee calls Netanyahu 'war criminal' — jpost.com](https://www.jpost.com/international/article-896787) * [South Korea says Israel's detention of flotilla activists 'way out of line' — timesofisrael.com](https://www.timesofisrael.com/south-korea-says-israels-detention-of-flotilla-activists-way-out-of-line/) * [South Korean President Lee Jae-Myung Accuses Israel of Kidnapping a Citizen — jfeed.com](https://www.jfeed.com/news-israel/south-korea-netanyahu-icc-warrant) * [South Korea market volatility nears record high after \$13 billion foreign investor selloff — cnbc.com](https://cnbc.com/2026/05/18/s-korea-market-volatility-near-record-as-foreigners-sell-13-billion.html) * [KOSPI surges 77% YTD: Why South Korea has become one of the world's best-performing stock markets in 2026 — livemint.com](https://livemint.com/market/stock-market-news/kospi-surges-77-ytd-why-south-korea-has-become-one-of-the-world-s-best-performing-stock-markets-in-2026-11779340826948.html) * [Why everybody is talking about stocks in Korea, and why it's worrisome — koreaherald.com](https://koreaherald.com/article/10741924) * [Gravity-defying Korean stock boom sparks wild Rolex, Bentley luxury shopping spree — economictimes.indiatimes.com](https://economictimes.indiatimes.com/markets/us-stocks/news/gravity-defying-korean-stock-boom-sparks-wild-rolex-bentley-luxury-shopping-spree/articleshow/131196984.cms) * [Goldman Sachs raises KOSPI target to 7,000 on earnings surge — prismnews.com](https://www.prismnews.com/workplace/goldman-sachs/goldman-sachs-raises-kospi-target-to-7000-on-earnings-surge) * [South Korea to launch leveraged stock ETFs on Samsung, SK Hynix — investing.com](https://www.investing.com/news/stock-market-news/south-korea-to-launch-leveraged-stock-etfs-on-samsung-sk-hynix--bloomberg-4708130) * [Campaign officially begins for June 3 elections with over 7,800 candidates — koreatimes.co.kr](https://www.koreatimes.co.kr/southkorea/politics/20260521/campaign-officially-begins-for-june-3-elections-with-7800-candidates) * [Daegu race tightens as conservatives rally behind Choo — koreatimes.co.kr](https://www.koreatimes.co.kr/southkorea/politics/20260525/daegu-race-tightens-as-conservatives-rally-behind-choo) * [Ruling party candidate suspends Ulsan mayoral primary over flawed poll claims — koreatimes.co.kr](https://www.koreatimes.co.kr/southkorea/politics/20260524/ruling-party-candidate-suspends-ulsan-mayoral-primary-over-flawed-poll-claims) * [Han Dong-hoon: 'Backing Park Min-sik Equals Voting for Ha Jung-woo' — en.sedaily.com](https://en.sedaily.com/politics/2026/05/23/han-dong-hoon-backing-park-min-sik-equals-voting-for-ha) * [Park Soo-hyun Camp Files Complaint Against PPP Leader Jang Dong-hyuk — en.sedaily.com](https://en.sedaily.com/finance/2026/05/24/park-soo-hyun-camp-files-complaint-against-ppp-leader-jang) * [Lee vows to carry on ex-President Roh's legacy at memorial ceremony — koreaherald.com](https://koreaherald.com/article/10754931) * [Ceremonia en memoria del expresidente Roh — sp.yna.co.kr](https://sp.yna.co.kr/view/PYH20260524012500883) * [President Lee Jae Myung: 'I will pursue reforms that remove unfair practices and privileges without fearing the backlash of vested interests' — khan.co.kr](https://khan.co.kr/en/article/202605231939017) * [President Lee Vows to Complete Late Roh Moo-hyun's Unfinished Dream — en.sedaily.com](https://en.sedaily.com/finance/2026/05/23/president-lee-vows-to-complete-late-roh-moo-hyuns) * [South Korea hosts America's biggest overseas military base – but what does its future look like under Trump? — theguardian.com](https://www.theguardian.com/world/2026/may/22/camp-humphreys-south-korea-us-military-base) * [The Duet of Command: Key Operational Issues for OPCON Transfer — thediplomat.com](https://thediplomat.com/2026/05/the-duet-of-command-key-operational-issues-for-opcon-transfer/) * [Advancing U.S.-ROK Security and Economic Cooperation — china.usembassy-china.org.cn](https://china.usembassy-china.org.cn/advancing-u-s-rok-security-and-economic-cooperation) * [U.S. Should Back ROK-Europe Maritime Security Cooperation — realclearworld.com](https://realclearworld.com/articles/2026/05/18/us_should_back_rok-europe_maritime_security_cooperation_1183332.html) * [DEFENCE CAPACITY ON PARADE: A Tour of Hanwha Facilities in South Korea — espritdecorps.ca](https://espritdecorps.ca/eye-on-industry/defence-capacity-on-parade-a-tour-of-hanwha-facilities-in-south-korea) * [Hanwha Aerospace unveils next-gen KAAV II prototype — asianmilitaryreview.com](https://asianmilitaryreview.com/2026/05/hanwha-aerospace-unveils-next-gen-kaav-ii-prototype-foc) * [South Korea unveils new amphibious assault vehicle — defence-blog.com](https://defence-blog.com/south-korea-unveils-new-amphibious-assault-vehicle) * [S. Korea rising in goal to become a top 4 global defense exporter — asahi.com](https://asahi.com/ajw/articles/16553731) * [Lee Jae Myung Government's White Paper Prioritizes Peaceful Coexistence — chosun.com](https://www.chosun.com/english/north-korea-en/2026/05/18/NYQA6PMYVFH5FI5CTIXD6UIHBQ/) * [Kim Jong Un Convenes a Military-Wide Commander Meeting — thediplomat.com](https://thediplomat.com/2026/05/kim-jong-un-convenes-a-military-wide-commander-meeting/) * [Paving the Way for Hostile Coexistence? What North Korea's Constitutional Revisions Mean for Inter-Korean Ties — 38north.org](https://38north.org/2026/05/paving-the-way-for-hostile-coexistence-what-north-koreas-constitutional-revisions-mean-for-inter-korean-ties/) * [Lee's approval rating rebounds to 64%: poll — koreatimes.co.kr](https://koreatimes.co.kr/southkorea/20260522/lees-approval-rating-rebounds-to-64-poll) * [President Lee Jae Myung's job approval at 66%… Ruling party support for local elections down to 52% — khan.co.kr](https://khan.co.kr/en/article/202605211354047) * [President Lee Jae Myung Approval Rating Climbs Again — evrimagaci.org](https://evrimagaci.org/gpt/president-lee-jae-myung-approval-rating-climbs-again-539911) * [Dunamu Deepens Financial Alliances as Hanwha Buys \$433 Million Stake to Expand Tokenized Securities Push — en.bloomingbit.io](https://en.bloomingbit.io/feed/news/112579) * [South Korea reviews Hana Bank's Dunamu investment — grafa.com](https://grafa.com/en/news/crypto/hana-bank-dunamu-stake-review) * [iM Bank verifies won stablecoin and partners with OpenAsset in South Korea — biz.chosun.com](https://biz.chosun.com/en/en-finance/2026/05/20/3GRNX2CC5RGRJA2CA6TBCOTAYE/) * [Desk Column: Korea Should Move Ahead With a Digital Asset Framework Law — en.bloomingbit.io](https://en.bloomingbit.io/feed/news/112645) * [(LEAD) Lee discusses S. Korea's labor policy in AI era with ILO chief — en.yna.co.kr](https://en.yna.co.kr/view/AEN20260522002951315) * [Lee discusses Korea's labor policy in AI era with ILO chief — koreatimes.co.kr](https://www.koreatimes.co.kr/foreignaffairs/20260522/lee-set-to-discuss-koreas-labor-policy-in-ai-era-with-ilo-chief) * [Special counsel questions Hong Jang-won over allegation of 'conveying justification for martial law to the CIA' — khan.co.kr](https://khan.co.kr/en/article/202605221332027) * [South Korea's ex-NIS deputy chief denies allegations of delivering message backing Yoon's martial law — prokerala.com](https://prokerala.com/news/articles/a1766291.html) * [South Korea to start 24-hour dollar-won spot trading from July 6 — reuters.com](https://www.reuters.com/world/asia-pacific/south-korea-start-24-hour-dollar-won-spot-trading-july-6-2026-05-21/) * [South Korea's nuclear submarine push framed as test of non-nuclear deterrence — thediplomat.com](https://thediplomat.com/2026/05/south-koreas-nuclear-submarine-push-is-a-test-of-non-nuclear-deterrence) * [SK Telecom and Ministry of National Defence sign MOU on sovereign AI foundation models for defense — iotglobalnetwork.com](https://www.iotglobalnetwork.com/iotdir/2026/05/19/sk-telecom-and-ministry-of-national-defence-sign-mou-to-use-sovereign-ai-foundation-models-in-defence-applications-52536/) * [Bank of Korea accelerates deposit token (CBDC) commercialization with auto-conversion and treasury payment tests — en.bloomingbit.io](https://en.bloomingbit.io/feed/news/112356) * [South Korea offers \$6 billion in emergency aid to Middle Eastern partner economies amid Iran war — chosun.com](https://www.chosun.com/english/market-money-en/2026/05/21/RNKX4LMSKRCIBJRSWP7XIQW47M/) * [Lee orders thorough safety inspection of GTX-A Samsung Station after rebar omission discovered — mk.co.kr](https://mk.co.kr/en/politics/12054780) * [Lee visits Jeju Air crash site, orders thorough reinvestigation after flawed initial probe — koreatimes.co.kr](https://koreatimes.co.kr/southkorea/politics/20260518/lee-visits-jeju-air-crash-site-orders-thorough-reinvestigation-after-flawed-initial-probe) * [Lee calls for public debate on tougher measures against hateful online speech — newkerala.com](https://newkerala.com/news/a/south-korean-president-calls-tougher-punishment-hateful-speech-779.htm) * [Seoul Economic TV issues formal apology after Lee condemns fabricated report on Chinese apartment purchases in Gangnam — english.dotdotnews.com](https://english.dotdotnews.com/a/202605/22/AP6a1006f0e4b09ea233161073.html) * [Lee attends Buddha's Birthday ceremony, vows to build government that saves people's lives — newkerala.com](https://newkerala.com/news/a/south-korean-president-vows-build-govt-that-saves-920.htm) * [South Korea's LetinAR raises \$18.5M to build optical technology for AI smart glasses — techcrunch.com](https://techcrunch.com/2026/05/18/south-koreas-letinar-is-building-the-optics-behind-ai-glasses/) * [North Korean women's football team visits South Korea for Asian Women's Champions League semi-final — france24.com](https://www.france24.com/en/live-news/20260521-south-korea-coach-hurt-by-support-for-north-team) * [Ukraine-South Korea defense cooperation analysis identifies underexplored opportunities including Soviet-era armor transfer — ukrainesarmsmonitor.substack.com](https://ukrainesarmsmonitor.substack.com/p/ukraine-and-south-korea-underexplored) * [Lee urges balanced decarbonization policy to protect South Korean industry competitiveness — chosun.com](https://www.chosun.com/english/market-money-en/2026/05/21/MPJIKJXFHFBGZBTDGANVVS4BFE/) * [Citibank Korea and Korea Eximbank provide \$100M syndicated financing for KoMiCo's US semiconductor expansion — koreaherald.com](https://www.koreaherald.com/article/10741178) * [KakaoBank and KBank diverge on inclusive finance strategies for mid-to-low credit borrowers — en.sedaily.com](https://en.sedaily.com/finance/2026/05/24/kakaobank-kbank-diverge-on-inclusive-finance-strategies) * [Opinion: 'Gaeddal Ants' — young female retail investors — pressure Lee government on profit-focused policies — chosun.com](https://chosun.com/english/opinion-en/2026/05/19/4HWJSVAGPZBJDJ7W7UQIOVONVY) * [Small Wars Journal / Arizona State publishes weekly South Korea and national security news commentary — smallwarsjournal.com](https://smallwarsjournal.com/2026/05/23/5-23-26-national-security-and-korean-news-and-commentary) * [Kyunghyang Shinmun reporters receive presidential plaque for intensive reporting on long-overdue issue — khan.co.kr](https://www.khan.co.kr/en/article/202605211718037/) * [Lee posts Couples Day Instagram video with First Lady Kim Hea Kyung — khan.co.kr](https://www.khan.co.kr/en/article/202605211355037/) * [Prosecutors indict gang for operating alleged illegal hospital fraud scheme affecting NHIS — archyde.com](https://www.archyde.com/prosecutors-indict-gang-for-operating-illegal-hospital-fraud-scheme/) * [Loan broker arrested for skimming fees in SME lending fraud scheme — archyde.com](https://www.archyde.com/loan-broker-arrested-for-skimming-fees-after-police-crack-down-on-fraud-scheme/) * [Debate over whether National Pension Service should boost domestic KOSPI equity allocation further — archyde.com](https://www.archyde.com/south-koreas-national-pension-funds-shouldnt-boost-domestic-stock-allocation-even-further/) * [Samsung chairman Lee Jae-yong reportedly visited Taiwan to court MediaTek as foundry client — wccftech.com](https://wccftech.com/samsungs-chairman-lee-jae-yong-has-reportedly-slipped-into-taiwan-to-steal-mediatek-as-a-foundry-client-from-tsmc/) * [First Lady Kim Hea Kyung NamuWiki biographical entry — en.namu.wiki](https://en.namu.wiki/w/%EA%B9%80%ED%98%9C%EA%B2%BD) *** ### Australia flag Australia Anthony Albanese appeared to well up defending his budget at the Victorian Labor conference this week — an unusual sight for a prime minister with 94 seats — while new polling projected a One Nation surge that could reduce his government to minority. The reforms are broader than the government's housing-affordability case suggested. Three measures form the package: a reduction in the capital gains tax (CGT) discount, new limits on negative gearing, and a 30% minimum tax on discretionary trusts. Taken together, this is the most comprehensive structural tax reform in decades — one that touches investment across asset classes and challenges the concentration of wealth that has channelled CGT benefits disproportionately to the wealthiest 10%. That ambition is precisely why the backlash has been so fierce. Business groups, start-ups, and a coalition of 40 under-40 millennial entrepreneurs united against the CGT changes. An AI meme campaign depicted Mr Albanese as a "47% silent partner." Chris Minns, the New South Wales premier, has become a persistent critic from within Labor — a Labor-on-Labor dynamic the government did not need. Internal MPs told the Guardian that the government "doesn't necessarily have a clear strategy on complicated issues." Mr Albanese told the Victorian conference: investors bid up property "in the comfort that that will be an increase in their tax deduction, that all of you and every Australian taxpayer is their partner." He received a standing ovation. He also appeared to well up. Last week's finding — Labor's primary vote at 29% — was troubling but containable. A new poll in the Australian Financial Review, confirmed by 9News, projected a One Nation surge large enough to reduce Labor to a minority government at the next election. That is a different category of threat. A minority government would lose the political capital that has underwritten three years of ambitious work — the AUKUS security pact (Australia, Britain and the United States), the Pacific security architecture, the budget reform itself. The government plans to push the full package — CGT, negative gearing, trusts — through before the July winter break, leaving less time for parliamentary scrutiny. In the Senate, it needs the Greens. The Greens say support is likely but conditional: they want the grandfathering exemption removed — the provision protecting existing property investors from the new restrictions. Granting that demand would make the negative gearing reform far more comprehensive than announced; refusing it risks a Senate standoff. The accelerated timeline looks less like confidence than an attempt to limit the time the Greens have to harden their conditions. Angus Taylor, the opposition leader, is managing problems of his own. Andrew McLachlan, a Liberal senator, broke publicly with Mr Taylor's proposal to strip welfare access from non-citizen permanent residents. Jacinta Price, a shadow minister, denied agreeing to a remark about migrants from India, China and Africa — a situation Mr Taylor contained by accepting her explanation, but not elegantly. He also backed gas extraction at an Adelaide energy conference, at odds with the South Australian Liberal Party. The Coalition's internal fractures continue to show. Richard Marles, the defence minister, travelled to Dili for the 24th anniversary of Timor-Leste's restoration of independence, meeting José Ramos-Horta, the president, and Xanana Gusmão, the prime minister. The visit confirmed progress on the New Partnership for a New Era (Parseria Foun ba Era Foun) bilateral framework, agreed in January, and opened discussions on integrating Timor-Leste into the Association of South-East Asian Nations (ASEAN) Defence Ministers' Plus process following its accession to the bloc in 2025. The Darwin-Dili corridor — 720 kilometres — is Australia's closest security link in the region. In Exercise Balikatan — the largest in the exercise's history — the Australian Defence Force (ADF) posted two firsts: HMAS Toowoomba became the first Royal Australian Navy major fleet unit to participate, and Combat Team Jackal became the first Australia-New Zealand combined call sign to operate in combat team configuration, embedded alongside US High Mobility Artillery Rocket System (HIMARS) units in coastal defence live-fire. The exercise concluded on 8 May; formal confirmation came this week. All Army mortar platoons completed danger-close live-fire recertification separately — a readiness measure following the previous week's suspension of ADF parachuting after a training accident. * **Taylor's budget reply swings Coalition toward immigration welfare cuts and a housing-linked migration cap** — Angus Taylor, the opposition leader, delivered his budget reply speech on 14 May, proposing to remove access to 17 welfare programmes for non-citizen permanent residents and tie migration intake to housing construction rates. The policy drew sustained commentary through the week, including internal Liberal dissent from Andrew McLachlan, a Liberal senator, backlash over the welfare-cut proposal's political and economic risks, and a controversy when Jacinta Price, a shadow minister, denied agreeing to a remark about migrants from India, China and Africa — a situation Mr Taylor contained by accepting her explanation. Mr Taylor separately backed gas extraction at an Adelaide energy conference, at odds with the South Australian Liberal Party. * [Anthony Albanese visibly emotional after defending Labor's capital gains tax and negative gearing changes — theguardian.com](https://www.theguardian.com/australia-news/2026/may/23/anthony-albanese-visibly-emotional-after-defending-labors-capital-gains-tax-and-negative-gearing-changes) * [Prime Minister Anthony Albanese defends tax changes at Labor conference — abc.net.au](https://www.abc.net.au/news/2026-05-23/anthony-albanese-defends-budget-changes-at-vic-labor-conference/106714680) * [Teary Albanese defends 'pro-aspiration' tax overhaul — afr.com](https://www.afr.com/politics/teary-albanese-defends-pro-aspiration-tax-overhaul-20260523-p5zzzu) * [Anthony Albanese defends negative gearing, capital gains and trust tax changes at Victorian Labor conference — smh.com.au](https://www.smh.com.au/politics/federal/aspiration-for-all-emotional-albanese-doubles-down-on-tax-changes-20260523-p60001.html) * [Capital gains tax and negative gearing legislation to be rammed through parliament by Labor before winter break — afr.com](https://www.afr.com/politics/federal/pm-to-ram-through-cgt-negative-gearing-changes-as-dissent-grows-20260518-p5zy1k) * [Capital gains tax changes: Young business leaders lobby Anthony Albanese to rethink CGT revamp — smh.com.au](https://www.smh.com.au/politics/federal/forty-under-40-millennial-entrepreneurs-unite-against-albanese-s-tax-overhaul-20260519-p5zyr6.html) * [Small businesses and startups go viral with AI Albo but tax experts 'rubbish' CGT claims — abc.net.au](https://www.abc.net.au/news/2026-05-20/small-business-start-ups-go-viral-with-ai-albo-cgt-posts/106695742) * [PM Albanese leaves door open to tax changes — cathnews.com](https://cathnews.com/2026/05/20/pm-albanese-leaves-door-open-to-tax-changes/) * [Prime minister Anthony Albanese refuses to rule out changes to the 'death tax' — 9news.com.au](https://www.9news.com.au/national/prime-minister-anthony-albanese-refuses-to-rule-out-changes-to-the-death-tax/b060a2f0-1450-407b-9bd7-769c187d2f61) * [Anthony Albanese believes this T-word will win him a third term. It's not 'tax' — smh.com.au](https://www.smh.com.au/politics/federal/albanese-believes-this-t-word-will-win-him-a-third-term-it-s-not-tax-20260521-p5zzif.html) * [As the wheels threaten to fall off the budget roadshow, a defensive Albanese could take a tip from the UK — theguardian.com](https://www.theguardian.com/australia-news/2026/may/23/australia-labor-federal-budget-tax-reform-explanation-albanese) * [Prime Minister Anthony Albanese defends controversial negative gearing and capital gains changes in tax reform speech at Victorian Labor conference — afr.com](https://www.afr.com/politics/albanese-plays-to-a-safe-room-on-controversial-tax-changes-20260524-p6003w) * [Lost in translation? Labor's historic tax reforms need plain English — brisbanetimes.com.au](https://www.brisbanetimes.com.au/politics/federal/lost-in-translation-labor-s-historic-tax-reforms-need-plain-english-20260524-p6003h.html) * [Labor sounds the alarm over One Nation surge as party begs supporters for \$27 donations — dailymail.com](https://www.dailymail.com/news/article-15844201/labor-poll-donation-one-nation-albanese.html) * [Legal warning to small businesses after spate of AI Anthony Albanese memes — 9news.com.au](https://www.9news.com.au/national/anthony-albanese-ai-meme-small-businesses-legal-warning/aafc16ad-9057-40ff-b332-e0bb9ef90076) * [Barefoot Investor sparks debate after arguing in support of tax changes in the Budget — dailymail.com](https://www.dailymail.com/news/article-15844495/Barefoot-Investor-sparks-debate-argues-support-tax-changes-Budget-acknowledging-Albanese-government-highest-taxing-80-years.html) * [David 'Kochie' Koch unloads on Labor tax shake-up: 'Why would Australians work harder?' — dailymail.com](https://www.dailymail.com/news/article-15816165/David-Kochie-Koch-unloads-Labor-tax-shake-Australians-work-harder.html) * [Peter Costello warns Albanese government's capital gains tax reforms will rob younger generations — afr.com](https://www.afr.com/policy/economy/young-people-will-pay-for-labor-s-higher-taxes-costello-20260524-p6002p) * ['Political catastrophe': Albanese has become a figure of 'ridicule and contempt' after budget — aussieconservative.com](https://www.aussieconservative.com/post/political-catastrophe-albanese-has-become-a-figure-of-ridicule-and-contempt-after-budget) * [Senior Liberal Andrew Bragg says investor incentives should be increased as Labor's plan comes under siege — thenightly.com.au](https://thenightly.com.au/business/markets/senior-liberal-andrew-bragg-says-investor-incentives-should-be-increased-as-labors-plan-comes-under-siege-c-22328668) * [Albanese's budget backlash tour spends little time with Coalition — abc.net.au](https://www.abc.net.au/news/2026-05-21/federal-budget-albanese-jim-chalmers-coalition-angus-taylor/106692032) * [The budget fallout has Angus Taylor back in contention, but something's askew about this battle — smh.com.au](https://www.smh.com.au/politics/federal/the-budget-fallout-has-angus-taylor-back-in-contention-but-there-s-something-askew-about-this-battle-20260521-p5zzbt.html) * [Five economists share their opinion of Labor's budget and the Coalition's reply — abc.net.au](https://www.abc.net.au/news/2026-05-24/five-economists-share-opinion-on-labour-budget-and-reply/106691514) * [An influencer gently asked Anthony Albanese a question about one of the big tax issues from the Budget — dailymail.com](https://dailymail.com/news/article-15826277/Albanese-word-salad-shares-capital-gains-tax.html) * [Federal politics: PM leaves door open to discretionary testamentary trust tax changes — as it happened — abc.net.au](https://www.abc.net.au/news/2026-05-22/federal-politics-live-blog-is-linked-group-may-be-prosecuted/106709642) * [Party leaders make election vow as PM defends tax — smh.com.au](https://www.smh.com.au/national/best-frenemies-inside-the-frosty-relationship-between-the-pm-and-the-premier-20260507-p5zuqs.html) * [Party leaders make election vow as PM defends tax — merimbulanewsweekly.com.au](https://www.merimbulanewsweekly.com.au/story/9252147/party-leaders-make-election-vow-as-pm-defends-tax/) * [Party leaders make election vow as PM defends tax — greatlakesadvocate.com.au](https://www.greatlakesadvocate.com.au/story/9252147/party-leaders-make-election-vow-as-pm-defends-tax/) * [Party leaders make election vow as PM defends tax — newcastleherald.com.au](https://www.newcastleherald.com.au/story/9252147/party-leaders-make-election-vow-as-pm-defends-tax/) * [Party leaders make election vow as PM defends tax — begadistrictnews.com.au](https://www.begadistrictnews.com.au/story/9252147/party-leaders-make-election-vow-as-pm-defends-tax/) * [Party leaders make election vow as PM defends tax — illawarramercury.com.au](https://www.illawarramercury.com.au/story/9252147/party-leaders-make-election-vow-as-pm-defends-tax/) * [Party leaders make election vow as PM defends tax — yasstribune.com.au](https://yasstribune.com.au/story/9252147/party-leaders-make-election-vow-as-pm-defends-tax/) * [PM slams Taylor over housing & migrants at Victorian Labor conference — southasiatimes.com.au](https://www.southasiatimes.com.au/australia/albanese-3/) * [Anthony Albanese and Chris Minns: inside their frosty relationship — smh.com.au](https://www.smh.com.au/national/best-frenemies-inside-the-frosty-relationship-between-the-pm-and-the-premier-20260507-p5zuqs.html) * [Chris Minns vs Anthony Albanese: Can the NSW premier actually win his federal funding fights? — afr.com](https://www.afr.com/politics/how-chris-minns-has-become-a-thorn-in-the-side-of-anthony-albanese-20260521-p5zzhe) * [Stop Labor's Death Tax — liberal.org.au](https://www.liberal.org.au/nodeathtax) * [Could the government's tax reform fail before it even begins? — 9news.com.au](https://www.9news.com.au/national/federal-budget-2026-labor-needs-greens-to-pass-tax-reform/64bd274d-0367-4f47-9d0d-08f2ffe751cc) * [Greens demand tougher tax changes but support likely — begadistrictnews.com.au](https://begadistrictnews.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — illawarramercury.com.au](https://illawarramercury.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — centralwesterndaily.com.au](https://centralwesterndaily.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — theleader.com.au](https://theleader.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — goulburnpost.com.au](https://goulburnpost.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — redlandcitybulletin.com.au](https://redlandcitybulletin.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — hardenexpress.com.au](https://hardenexpress.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — ulladullatimes.com.au](https://ulladullatimes.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — easternriverinachronicle.com.au](https://easternriverinachronicle.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Greens demand tougher tax changes but support likely — macleayargus.com.au](https://macleayargus.com.au/story/9251700/greens-demand-tougher-tax-changes-but-support-likely) * [Is this our political future? New poll lays out One Nation surge, Labor minority — afr.com](https://afr.com/politics/federal/is-this-our-political-future-new-poll-lays-out-one-nation-surge-labor-minority-20260522-p5zzp8) * [Federal politics Australia: New post-budget poll reveals mixed verdict for Anthony Albanese, Angus Taylor — 9news.com.au](https://www.9news.com.au/national/federal-politics-australia-new-budget-poll-reveals-mixed-verdict-for-anthony-albanese-angus-taylor/87438a42-390b-4a9c-9c96-5fe1b52e07b7) * [To avoid future road, rail and renewable blowouts costing billions, Australia needs these 3 big fixes — theconversation.com](https://theconversation.com/to-avoid-future-road-rail-and-renewable-blowouts-costing-billions-australia-needs-these-3-big-fixes-282711) * [Australia news LIVE: Tony Abbott to be elected unopposed as Liberal Party president — afr.com](https://www.afr.com/politics/federal/us-iran-war-live-updates-iran-says-new-us-proposal-has-narrowed-gap-20260522-p5zznc) * [LIVE updates: One Nation, Labor, LNP unfazed by prospective teal party — afr.com](https://www.afr.com/politics/federal/iran-war-live-updates-trump-says-us-won-t-rush-into-a-deal-with-iran-20260525-p6007s) * [Angus Taylor's migration cap may not cut migration at all — abc.net.au](https://www.abc.net.au/news/2026-05-25/housing-crisis-migration-cap-kohler/106716056) * [Angus Taylor's citizenship ruse — thesaturdaypaper.com.au](https://www.thesaturdaypaper.com.au/comment/2026/05/23/angus-taylors-citizenship-ruse) * [Angus Taylor may have just created half a million new Labor voters — thenewdaily.com.au](https://www.thenewdaily.com.au/opinion/2026/05/24/angus-taylor-labor-voters) * [Who profits from Angus Taylor's migrant bashing? — greenleft.org.au](https://www.greenleft.org.au/2026/1454/analysis/who-profits-angus-taylors-migrant-bashing) * [Opposition leader Angus Taylor backs Jacinta Price after questions about migration remark — 9news.com.au](https://www.9news.com.au/national/opposition-leader-angus-taylor-backs-jacinta-price-after-questions-about-migration-remark/d1fa0853-3d6e-4f91-8d02-ddb2ae398f06) * ['Doesn't sound good': Fears for difficult citizenship choice under new Coalition policy — sbs.com.au](https://www.sbs.com.au/news/article/doesnt-sound-good-fears-for-difficult-citizenship-choice-under-new-coalition-policy/5ocuk5zop) * [Thepoint | Angus Taylor's migration policy collapses under its own maths — thepoint.com.au](https://thepoint.com.au/off-the-charts/260521-angus-taylors-migration-policy-collapses-under-its-own-maths) * [Angus Taylor did the right thing defending Jacinta Price — spectator.com.au](https://www.spectator.com.au/2026/05/angus-taylor-did-the-right-thing-defending-jacinta-price/) * ['Assault on aspiration': Angus Taylor goes on the attack during Penrith visit — westernweekender.com.au](https://www.westernweekender.com.au/2026/05/assault-on-aspiration-angus-taylor-goes-on-the-attack-during-penrith-visit/) * [Angus Taylor immigration target: Coalition plan is full of threats. Immigrants need encouragement — smh.com.au](https://www.smh.com.au/national/angus-taylor-s-wrong-immigrants-need-encouragement-to-become-citizens-not-threats-20260518-p5zxzr.html) * [Ian Warden | Angus Taylor's 'moral ugliness' triggers body responses — canberratimes.com.au](https://canberratimes.com.au/story/9248109/ian-warden-angus-taylors-moral-ugliness-triggers-body-responses) * [Angus Taylor takes shelter with a weird mob from a fictional past — smh.com.au](https://www.smh.com.au/national/angus-taylor-takes-shelter-with-a-weird-mob-from-a-fictional-past-20260519-p5zyq9.html) * [Immigration: How shifting the focus from benefits to civic opportunity can strengthen our democracy — afr.com](https://www.afr.com/politics/federal/this-migrant-thinks-only-citizens-should-get-government-jobs-20260521-p5zzaj) * [Liberal senator defies Angus Taylor over drastic migration welfare cap — streamlinefeed.co.ke](https://streamlinefeed.co.ke/news/liberal-senator-defies-angus-taylor-over-drastic-migration-welfare-cap) * [Liberal leader Angus Taylor spruiks gas extraction in Adelaide as SA party opposes fracking proposal — abc.net.au](https://www.abc.net.au/news) *** ### Indonesia flag Indonesia Indonesia's rupiah hit a record low of Rp17,745 this week. The government's three-part response — a surprise rate hike, new capital controls, and a plan to channel the country's top commodity exports through a new state entity — deepened investor alarm rather than easing it. Bank Indonesia raised its benchmark rate 50 basis points to 5.25%, the first hike in two years and double what analysts had expected, citing rupiah pressure and Middle East volatility. The currency settled near Rp17,600 after the decision — still a record — and showed no sign of sustained recovery. Foreign reserves have fallen \$10 billion since last April; the first-quarter current account deficit reached 1.09% of GDP; Fitch and Moody's have both put the credit rating on negative outlook. SEB concluded the rupiah faces further weakness. The Finance Ministry is buying up to \$113 million in government bonds daily to keep yields from rising further. The bigger structural move was the commodity export centralisation. At a parliamentary plenary, Prabowo Subianto announced that PT Danantara Sumberdaya Indonesia (DSI) — a new entity under the oversight of Danantara, the state investment fund — will act as the routing channel for coal, palm oil, and ferronickel, Indonesia's three largest export commodities. From June 1, exporters must hold all revenues in state-owned banks. Airlangga Hartarto, the senior economic minister, said the aim was to stabilise the rupiah; the president claimed \$908 billion had been lost to under-invoicing over 34 years. Rumours of the plan had pushed Jakarta's stock exchange down 3.5% on Tuesday; the exchange fell a further 0.82% on Wednesday after the formal announcement. Analysts at Macquarie Capital, S\&P Global Energy, and Credit Agricole reached the same conclusion: policy uncertainty had deepened, not diminished. Bank Indonesia also capped dollar purchases at \$25,000 per transaction. Combined with the export revenue retention requirement and the new commodity intermediary, the package moves Indonesia toward managed-capital-account territory. Foreign portfolio investors are likely to read the dollar cap as a precursor to broader controls — a parallel that Malaysia's 1998 experience does nothing to ease. The choice of Luke Thomas Mahony, an Australian, to lead the new entity was unexpected. For a government that campaigns on resource nationalism and frames commodity extraction in terms of colonial grievance, appointing a foreign national to run the entity that will control those very exports requires explanation. The most plausible reading is that an Australian — not Chinese, not American — gives the entity a claim to global-market neutrality that a domestic political appointee could not provide, and gives the administration diplomatic cover if the new structure disrupts existing trade relationships. Rosan Roeslani, Danantara's chief executive, confirmed the appointment. Whether Mr Mahony's authority proves real or symbolic is unclear. The economic crisis has also accelerated the centralisation of fiscal power in the presidency. Mr Prabowo delivered the 2027 macroeconomic framework and fiscal outline to parliament himself — a 95-minute address traditionally performed by the finance minister. The 2027 deficit target of 1.8–2.4% of GDP was the headline, but the manner of delivery was the signal. The new entity's creation followed the same pattern: announced at a parliamentary address rather than through a Ministry of Trade regulatory process. Danantara's mandate has grown from managing state-owned enterprise assets to overseeing the routing and pricing of Indonesia's top three export commodity flows, with no new oversight mechanism in place and no update on the outstanding audit of Danantara's 2025 accounts. The broader political coalition is holding — and positioning for 2029. Golkar's deputy chairman confirmed the party will consider formally backing a Prabowo-Gibran second term, adding that support would follow if the government succeeds. Bara JP went further, with its chairman saying the endorsement followed a direct instruction from Joko Widodo, the former president, at the party's plenary. The Jokowi-Prabowo alignment is not passive; it is actively maintained. That Golkar's Idrus Marham moved quickly this week to dismiss the 1998 parallel — asserting Indonesia is building a Pancasila economy, not sliding toward crisis — suggests party leaders are co-ordinating their response on the economy. Mr Prabowo also used his parliamentary appearance to praise the Indonesian Democratic Party of Struggle (PDI-P), the sole opposition bloc, calling its decision to stay out of the coalition a "sacrifice" serving democracy's checks and balances and saying sharp PDI-P criticism sometimes keeps him awake at night but "may have some truth in it." Puan Maharani, the PDI-P deputy speaker, confirmed the party's criticism is "constructive." The gesture costs the president nothing — the coalition holds 81% of parliament — but offers external audiences a signal of democratic normalcy during an acute economic crisis. It is image management, not concession. Gibran Rakabuming Raka, the vice president, was in Nusa Tenggara Timur, where he made an unscheduled stop in Amfoang at students' urging, inspected two broken bridges isolating several sub-districts, apologised to residents, and promoted seaweed farming under Prabowo's food sovereignty programme. He declared "no more Java-centric development, but Indonesia-centric." The outer-island circuit — attentive, responsive, stamped with the food sovereignty programme — drew coverage from 25 domestic outlets. The political elite is already positioning for 2029 even as the rupiah sets records. * **Indonesian Democratic Party of Struggle (PDI-P) consolidates for 2029 elections through nationwide branch assemblies (Musancab)** — PDI-P held simultaneous branch-level organisational assemblies (Musancab) across Java and Bali during the week of May 18–24, with provincial-level co-ordination in Central Java, East Java, and Bali focusing on grassroots consolidation and recruiting Gen Z members ahead of the 2029 elections. The party's sole opposition status was repeatedly cited by organisers as motivation for strengthened mobilisation. *([tempo.co](https://www.tempo.co/politik/pdi-perjuangan-jateng-targetkan-kemenangan-di-pemilu-2029-2137927))* * **Pertamina publicly denies viral hoax claiming Pertalite fuel restrictions for certain vehicle brands from June 1** — A social media hoax claiming that vehicles with engines above 1,400cc would be banned from buying subsidised Pertalite fuel from June 1, 2026, spread widely and was denied multiple times by Pertamina Patra Niaga's corporate secretary. The company said no government directive or regulation existed for such a restriction and urged the public to verify information through official channels. *([cnbcindonesia.com](https://www.cnbcindonesia.com/news/20260523120823-4-737349/heboh-larangan-kendaraan-isi-pertalite-1-juni-pertamina-buka-suara))* * **Great Indonesia Movement (Gerindra) holds North Sulawesi regional working conference with national party leadership in attendance** — Gerindra's North Sulawesi branch held its 2026 regional working conference (Rakerda) at Four Points by Sheraton Manado on May 23, attended by Sufmi Dasco Ahmad, the party's central executive board chairman, and thousands of cadres; the Bitung mayor publicly joined Gerindra at the event. The conference targeted winning three national parliament seats in North Sulawesi at the next election. *([indosulut.com](https://www.indosulut.com/2026/05/23/dasco-buka-rakerda-gerindra-sulut-2026-yulius-))* * [Indonesia tightens control over key commodities in major trade takeover, influencing global exports — apnews.com](https://apnews.com/article/indonesia-prabowo-resources-coal-nickel-9b50ad884646840db57d1fedbec564cd) * [Indonesia to exempt nickel pig iron and some palm oil derivatives from centralised export policy — reuters.com](https://www.reuters.com/world/asia-pacific/indonesia-exempt-nickel-pig-iron-some-palm-oil-derivatives-centralised-export-2026-05-22/) * [Indonesia unveils plan to centralise commodity exports through state agency — reuters.com](https://www.reuters.com/world/asia-pacific/indonesia-plans-centralise-commodity-exports-through-state-agency-sources-say-2026-05-20/) * [Indonesia tightens control over key exports such as palm oil — apnews.com](https://apnews.com/article/indonesia-prabowo-resources-coal-nickel-9a2daec6efffe70032020b19bc54d618) * [Indonesia unveils ambitious targets, tightens commodities grip in pursuit of 'magnificent prosperity' — reuters.com](https://www.reuters.com/world/asia-pacific/indonesias-prabowo-announces-2027-fiscal-deficit-target-18-24-gdp-2026-05-20/) * [What we know about Indonesia's new export earnings retention rules — reuters.com](https://www.reuters.com/world/asia-pacific/what-we-know-about-indonesias-new-export-earnings-retention-rules-2026-05-21/) * [Why Indonesia President Prabowo's Commodity Export Controls Are Spooking Markets — bloomberg.com](https://www.bloomberg.com/news/articles/2026-05-22/why-indonesia-president-prabowo-s-commodity-export-controls-are-spooking-markets) * [Prabowo's Indonesia Is Teetering Toward a Familiar Disaster — bloomberg.com](https://bloomberg.com/opinion/articles/2026-05-20/prabowo-s-indonesia-is-teetering-toward-a-familiar-disaster) * [Prabowo's Biggest Crackdown on Tycoons Shocked His Own Officials — bloomberg.com](https://bloomberg.com/news/articles/2026-05-21/prabowo-s-biggest-crackdown-on-tycoons-shocked-his-own-officials) * [Prabowo's export control move could boost Indonesia's revenues, but experts worry about stronger state hand — channelnewsasia.com](https://www.channelnewsasia.com/asia/indonesia-prabowo-subianto-economy-revenue-6135986) * [Prabowo's Indonesia is on the road to ruin — taipeitimes.com](https://www.taipeitimes.com/News/editorials/archives/2026/05/25/2003857906) * [Analysis: Resource export monopoly: Prabowo's risky solution to under-invoicing — thejakartapost.com](https://www.thejakartapost.com/opinion/2026/05/25/analysis-resource-export-monopoly-prabowos-risky-solution-to-under-invoicing.html) * [Prabowo: People Don't Dream of Being Rich, They Just Want to Live Worthy and Well — voi.id](https://voi.id/en/ekonomi/576183) * [Indonesia to Launch New CPO Export Reporting System Through Danantara on June 1 — palmoilmagazine.com](https://www.palmoilmagazine.com/cpo-export/2026/05/25/indonesia-to-launch-new-cpo-export-reporting-system-through-danantara-on-june-1/) * [Prabowo Pushes Indonesia to Set Global Palm Oil Prices Instead of Following Foreign Markets — palmoilmagazine.com](https://www.palmoilmagazine.com/headlines/2026/05/24/prabowo-pushes-indonesia-to-set-global-palm-oil-prices-instead-of-following-foreign-markets/) * [Batu Bara & CPO Bergejolak, Pasar Global Tunggu Jurus Baru Prabowo — cnbcindonesia.com](https://www.cnbcindonesia.com/research/20260524073141-128-737503/batu-bara-cpo-bergejolak-pasar-global-tunggu-jurus-baru-prabowo) * [Presiden Prabowo Tegaskan Hentikan Kebocoran Kekayaan Negara — memorandum.disway.id](https://memorandum.disway.id/nasional/read/159893/presiden-prabowo-tegaskan-hentikan-kebocoran-kekayaan-negara) * [LMND: Penegasan Prabowo soal Pasal 33 UUD 1945 sejalan ekonomi berdikari — antaranews.com](https://www.antaranews.com/berita/5580788/lmnd-penegasan-prabowo-soal-pasal-33-uud-1945-sejalan-ekonomi-berdikari) * [TATA NIAGA DANANTARA — portal-islam.id](https://portal-islam.id/tata-niaga-danantara/) * [Prabowo Ungkap Danantara Kelola Aset Rp 17.000 Triliun: Jangan Bocor! 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